Who Pays When a Business Is Hacked?

[William Knowles <wk () C4I ORG>]

http://www.businessweek.com/bwdaily/dnflash/may2000/nf00523d.htm

Who Pays When a Business Is Hacked?

Suddenly, insurers that have issued conventional property-damage
policies could find themselves covering computer outages

Companies hoping their property-damage policies cover sales lost
because of hacker attacks are heralding a recent ruling in the U.S.
District Court in Arizona. There a federal judge decided that a
temporary computer outage caused by an electrical problem in a big
data center constitutes "property damage" covered by an existing
policy. On Dec. 22, 1998, a short in a fire-alarm panel shut down
Ingram Micro's main data center in Tucson. A PC wholesaler that
conducts the majority of its business over the Internet or electronic
data interchanges, Ingram execs had always feared something like this
would happen.

[...]


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