Dive Brief:
- Cyber insurers are raising their rates and their deductibles, and in some cases limiting the amount of coverage they offer, according to Marsh & McLennan Co, NBC News reports.
- The limits could potentially leave companies exposed.
- Cyber insurance traditionally helps cover costs like forensic investigations, credit monitoring, legal fees and settlements.
Dive Insight:
Average cyber insurance rates for retailers surged 32% in the first half of this year, according to Marsh & McLennan Co. The price of cyber coverage depends on the strength of a company's security, but the overall trend is up dramatically.
Experts say “high risk” companies such as retailers and health insurers may have a tough time getting coverage at all.
"Some companies are struggling to find the money to buy the coverage they want," said Tom Reagan, a cyber insurance executive with Marsh & McLennan Co's Marsh broker unit.
Even the biggest insurers will likely not write policies for more than $100 million for risky customers, said Marsh & McLennan Co. But hacks can easily cost companies more than twice that. Target said its 2013 data breach cost $264 million.
