Security

Insurance against cyber attacks may be coming soon in the U.S.

security insurance
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Your company was hacked and your data, proprietary technology, and personal information were all taken. A new cyber-security insurance policy may have you covered in the near future.

The U.S. government has been exploring various incentives for getting private businesses to comply with a new set of security standards it is creating. It has surveyed the tech community for ideas on what might get businesses interested, and it seems cybersecurity insurance is at the top of the list.

Your business can be all but shut down by a hack attack. Having money siphoned off may not be the worst of your worries. Stolen intellectual property and loss of customer trust can also take businesses out. Insurance for these situations may help you recover.

The U.S. government has been concerned about the country’s critical infrastructure for awhile. Our electrical grid and water supply are more deeply connected to the Internet than ever. This means there are a lot more ways hackers might slip into the system and wreak havoc.

So, the government wants to start securing those private sector companies that might act as a jumping off point for hackers looking to “daisy-chain” their way into the system.

It is looking at a number of different incentive options, but the first one states that the government will work with insurance companies to offer an insurance policy. Companies will be able to get the coverage if they meet certain standards for security that the government puts out in its “Cybersecurity Framework.”

Other incentive options include grants, public recognition, and a reduction in liabilities associated with sharing information with the government.

A blog post on the White House blog says that some of these options could be enacted immediately, while others may take more legislative action before they can be carried through. The government hopes to have this Framework completed by October.