Headline-grabbing data breaches have helped push more companies to buy stand-alone cyberinsurance policies. Security experts, of course, caution that insurance shouldn’t be seen as a replacement for good cybersecurity measures, because data breaches and cyberattacks can cause lasting damage that is difficult to recoup. Some of these risks may be covered under other kinds of insurance policies—businesses with kidnap and ransom insurance occasionally use it to recoup losses from ransomware, for example. But insurance experts say such policies weren’t designed with cyberrisks in mind, and will likely be disputed as stand-alone cyberinsurance products emerge. A wide effectSome insurance providers and industry experts argue that the benefits of insurance go beyond the coverage itself.

Source: Wall Street Journal September 18, 2017 02:03 UTC