Every year, companies in America lose around $150 million in revenues because of computer crimes and breaches in computer security. These crimes include stolen information, destruction of data or networks, internet access abuse, viruses, spoofing and system penetration by outsiders. There are also active wiretapping and financial fraud, etc. Most of the people who steal information or hack data are ordinary people who are sometimes motivated by challenge to crack a system. Although there exists nowadays what we call firewalls to protect data from being stolen or destroyed, computer security is still insufficient.

Therefore, there is an urgent need for Hacking Insurance. This is important to prevent companies from going into financial injury or network destruction. Especially in e-commerce business where computers are the basic instrument or device in business or sales, it is important to maintain security insurance because hacking activity is rampant these days.

There are several insurance existing today for your protection. However, traditional insurance policies are mostly insufficient for the usual crime damages which are caused by computers. Usually, these insurance cover the protection of the physical assets but not the information assets.  Cyber  risk coverage is rarely offered. For traditional insurance companies, the terms like intellectual property infringement, computer fraud, employee dishonesty and advertising offences over the internet are not catered to. Moreover, these insurance do not recognize loss in business or shut down because of computer crimes done by hackers.

There are several advantages in getting a hacking insurance. Insurance companies today are starting to identify and understand the impact of technology on businesses. They are able to open up and extend their coverage to online businesses or e-commerce risks.

Starting in the year 2000, companies like Zurich Insurance Group, Lloyd’s of London and American International Group’s Net Advantage Program acknowledges the various e-commerce crimes. Examples of these crimes are  cyber  extortion, viruses, theft, infringement of copyright and trademark, destruction of data. These companies offer rewards for those who can catch these hackers and reimburse for post hacking crisis management. Because of this, many insurance companies are coming out with e-commerce protection packages. Some of the insurance companies who came out were INSUREtrust.com, Hamilton, Ace Ltd’s information technology products, Okemos, etc.

Because of hacking insurance, your business is safeguarded from possible damage caused by hackers. Since information is what gives the company competitive edge in the business world, it would be not good for the company if information is stolen or destroyed. This is why many insurance companies are now offering products for protection from viruses or network breaches.

A good example of this is Chubb Corporation’s ‘ cyber-security ‘ policy where they provide comprehensive and complete coverage against fraud in e-communication, e-threat, e-libel, theft of data and information, destruction of e-services and many more. Many insurance companies are dealing the difficult issues like asymmetric information so that they can provide a more complete solution and protection coverage to the need of the client.

Hacking insurance is an effective tool to improve your internet security. Today,  cyber  insurance products are offered by many insurance companies to meet the needs of e-businesses.

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Every year, companies in America lose around $150 million in revenues because of computer crimes and breaches in computer security. These crimes include stolen information, destruction of data or networks, internet access abuse, viruses, spoofing and system penetration by outsiders. There are also active wiretapping and financial fraud, etc....