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 own. 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 service. "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. -o- Subscribe: mail majordomot_private with "subscribe isn". Today's ISN Sponsor: Repent Security Incorporated [www.repsec.com]
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