Sony Breaches a Reminder for Enterprises to Check Liability Insurance

[InfoSec News <alerts () infosecnews org>]

http://www.eweek.com/c/a/Security/Sony-Breaches-a-Reminder-for-Enterprises-to-Check-Liability-Insurance-140926/

By Fahmida Y. Rashid
eWEEK.com
2011-07-29

Not all insurance policies are created equal and organizations should 
check their policies before a data breach to see if they are covered. In 
the case of Sony, perhaps not.

Recent high-profile cyber-attacks have renewed interest in 
cyber-insurance as CEOs worry about covering the cost of a data breach 
if, or when, they get attacked. However, the policies they are buying 
may not help them in case of a large-scale breach.

Sony is discovering this the hard way as the embattled Japanese 
entertainment giant struggles to recover from the series of 
cyber-attacks in April and May on several of its online entertainment 
services and over 100 million user accounts were compromised. At least 
55 putative class action lawsuits from irate consumers about the breach 
have been filed against the company in the United States.

Sony has estimated it will cost $178 million to deal with the breach 
this year, which includes implementing new security measures, but 
doesn't include legal fees or potential compensation awards. Sony said 
in May it would depend on its insurers to help pay for the breach.

[...]


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