Village leaders in Northport, New York are wrestling with a serious decision about insurance this summer.  In the wake of a January 2014 ransomware attack against the Northport Police Department, the village is now considering the purchase of a cyberinsurance policy.  At a May meeting, the village’s Board of Trustees entertained a presentation covering the benefits of cybersecurity insurance to defray the costs of future security incidents.

While Northport may be considering cybersecurity insurance for the first time, these policies aren’t new.  Over the past decade, insurance firms developed a variety of cyberinsurance products designed to cover this emerging area of risk facing many organizations.  While cyberinsurance can’t prevent a breach or restore constituent confidence in an agency suffering a breach, the policies do allow agencies to transfer some of the financial burden of incident response to an insurance provider.

Read the full story: Security Save: Cyberinsurance

Published September 22, 2015 in StateTech Magazine