Industry experts are warning that with escalating costs of cyber-attacks businesses could need as much as $1 billion in cyber insurance. That upper level would be for larger companies which are currently struggling to secure coverage of more than $300,000. Last year’s attack on Target cost the company $248 million but the costs would be dramatically higher if the target was an energy company or utility. Ben Beeson of insurance broker Lockton told the Financial Times that $1 billion policies are needed but added that “The question is how do we get there and price risk, especially when the risks are changing every day.” More US firms are arranging cyber risk coverage but there is a question over the supply chain with overseas businesses less likely to have adequate coverage, potentially crippling their ability to operate if they were to be targeted.
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