Retail Data Breaches Rock The Cyber Insurance Market
Retail giant Target got an unusual amount of air time over the holiday season last year. Unfortunately for them, it was not due to their engaging commercials. Their positive consumer appeal was damaged by a massive security breach that stole payment card and customer sensitive personal information from 70 million customers. Two other breaches at Michael's and Neiman Marcus also made headlines and now there is a similar potential breach at Home Depot.
In the recent report "State of the Cyber Insurance Market: Ten Lessons Learned From Major Retailer Breaches," Lockton's Emily Freeman takes a look at the facts regarding the breaches, provides details on how they happened, the impact on companies with Point-of-Sale and credit card exposure, and how underwriters are doing things differently as a result.
Pretending that a breach cannot happen to your business is no longer an option. B2C companies are asking this essential question post-Target at their shop: "How bad can a bad day be?"
The Lockton report provides an in-depth look at what retailers and underwriters are doing to address this risk including:
- A sharp uptick in coverage limits purchased
- Customized insurance policy wording
- Increased scrutiny of security and POS systems
- Data breach response planning
"A breach can cause not only major financial loss, but also significant damage to brand and reputation if handled badly," said Freeman. "Lockton has developed a coordinated approach with clients so that all major aspects of breach response are built into the program they purchase, including pre-approved forensics and external legal counsel."
While cyber attacks are getting more sophisticated, so are the tools to combat them. By partnering with your insurance broker, you can protect your business from a devastating loss.
More than 5,300 professionals at Lockton provide 41,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held, independent insurance broker in the world and 10th largest overall. Independent researcher