Underlying Issues of Cyber Crime Isn’t Tackled by Insurance

Companies are finding a way to minimize the repercussions when their digital security is violated. Unfortunately, they’re turning to the same safeguards that protect the guitar-strumming hands of Keith Richards, the goal-scoring limbs of David Beckham and the most remarkable assets of Dolly Parton, rather than coming clean about the perils of data breaches or pooling information so that threats can be properly quantified and addressed. In short, they’re focusing on the consequences of cyber crime, not the causes, by purchasing liability and errors-and-omissions insurance. It seems buying insurance against the financial consequences of cyber terrorism from Lloyd’s of London, the world’s oldest insurance market, is easier and more palatable than tackling the underlying problem.