[ISN] Another firm offers hacking insurance.

From: mea culpa (jerichot_private)
Date: Sat Jul 18 1998 - 04:26:32 PDT

  • Next message: mea culpa: "[ISN] NetWare falls prey to hackers"

    Forwarded From: William Knowles <erehwont_private>
    [Inter@ctive Week] (7.13.98) An Atlanta-based insurance company is daring
    to go where others have feared to tread, by offering insurance against
    hacker attacks to companies involved in electronic commerce. 
    The policy, from Network Risk Management Services Inc., is believed to be
    the first to offer protection against third-party liability claims
    resulting from breaches in computer network or Internet Web site security. 
    Other insurance and security companies may not be far behind, however,
    drawn by potentially lucrative rewards. IBM Corp.  confirmed that it is in
    talks with a major insurance player and is nearing an announcement of its
    The NRMS policy, called InsureTrust, covers losses or claims that might
    arise from the theft of data, including corporate or personnel
    information, misuse of that data and attacks that result in denial of
    "There has been a huge gap in the availability of insurance for breach of
    security, and that has held many organizations back from developing
    complex electronic commerce services," said Steven Haase, chief executive
    officer of NRMS. 
    NRMS is a subsidiary of Hamilton, Dorsey, Alston Co., an Atlanta-based
    insurance firm. 
    Haase acknowledged that offering insurance against liability claims
    carries tremendous risks because the extent of potential losses isn't
    known. However, he said, NRMS has put controls in place to limit the risk. 
    Companies applying for a policy must go through a security risk assessment
    and comply with any recommendations put forward. NRMS could not provide a
    price range for policies. 
    ICSA Inc., a Carlisle, Pa.-based security firm, began offering a variation
    of insurance to its customers last month. ICSA now offers a TruSecure
    package, which will pay clients up to $250,000 if a network that has been
    certified by the firm has been breached. Because a broker must be licensed
    to offer insurance, TruSecure is described as an "assurance" policy. 
    Subscribe: mail majordomot_private with "subscribe isn".
    Today's ISN Sponsor: Repent Security Incorporated [www.repsec.com]

    This archive was generated by hypermail 2b30 : Fri Apr 13 2001 - 12:58:35 PDT