Swedish company offers insurance against security incidents
The Swedish part of IDG today has a story about a Swedish company, Direct, who offers insurance for IT-related accidents. The insurance claims to cover damages caused by for instance intrusions and compromises, as well as accidents. I guess most larger companies have insurances that cover similar damages, but this insurance is according to the insurance company targeted at small and medium size bussinesses.
The insurance company exemplifies the use of the insurance by saying that extorsion-based attacks can now simply be paid off - Wow, that’s a good way to solve incidents. What about pressing charges? Most insurances need a police report too, so how will that work?
I like the idea though. But these kind of insurances are still ahead of its time. First, I’d like to see a law, similar to those in California, that requires companies by law to report security breaches. Today, incidents largely go unnoticed from the public, which means that the demand for this kind of insurance will be low - despite of what the insurance company in question says.