Worried About Hackers, States Turn To Cyber Insurance

As the threat from hackers and cybercriminals intensifies, a growing number of states are buying cyber insurance to protect themselves — and taxpayers.

“It’s expensive. It’s a big budget item for us. But it’s absolutely worth it,” said Michael Hussey, Utah’s chief information officer. “You’re seeing breaches now that cost companies and states millions and millions of dollars.” More than a dozen states now have cyber insurance policies, which cover losses and expenses if a computer network is hacked. Insurers typically pick up the cost of investigating and restoring data, notifying those whose information may have been compromised, and providing legal and public relations services and credit monitoring.