Updated: 02/28/2014 10:13 PM
Created: 02/28/2014 3:38 PM KSTP.com
By: Josh Rosenthal
A lot of us have auto, life, and health insurance. But how about cyber liability insurance? It's a relatively new type of coverage, and it's becoming a lot more popular with businesses.
"Our world is changing and because of that, what we need to protect ourselves is also changing," explained Miranda Childers, an account executive with Ahmann-Martin, a risk and benefits consulting company in Eden Prairie.
For an example of cyber liability insurance in action, look no further than Target. According to the company's fourth quarter earnings report, they spent about about $61 million in expenses related to their data breach. Insurance picked up $44 million of it.
Childers says, Target's data breach has a lot of people calling with questions.
"Everybody's interested," she said. "They want to know what it does, how much it costs, how can I get it?"
Big businesses aren't the only ones with cyber liability insurance, smaller businesses are getting in on the act too. Just ask Marsh LLC, one of the largest brokerage firms in the country. They saw a 33 percent increase in the number of U.S. clients purchasing cyber insurance in 2012 compared to 2011. They think growth was comparable to that in 2013, and now they expect 2014 to be a record year.
"I think within the next five to 10 years it will be a very commonly purchased insurance, along with other things -- auto liability, property -- that they buy right now," said Childers.
The cost of cyber liability insurance varies. It depends on a lot of different variables, like the size of your business, the type of business, and what type of security is already in place.