Due to the increasing number of successful and attempted
cyber-attacks and increased government scrutiny surrounding
protection of confidential information, companies cannot ignore the
various risks associated with potential data breaches. The
result is that more and more companies are considering and
purchasing cyber insurance. Companies are increasingly
recognizing that customer names, customer financial data, credit
card information, social security numbers, passwords, employee
information, medical information, confidential commercial
information and intellectual property are all vulnerable to a data
breach. Some companies' entire business model relies on
the confidentiality of trade secrets or other propriety
information, the compromise of which could cripple the
business. Loss or disclosure of this data can result in lost
revenue and negative publicity. Not surprisingly, more and
more companies are buying cyber insurance to minimize or mitigate
their risks.
