Lucky for Target, the company had insurance
Tyler Moore, a computer science professor at SMU, talks about the Target computerized data breach.
By David Gura
Scott Godes, a lawyer with Barnes and Thornburg, focuses on corporate insurance. He says that after a data breach, there are lots of questions: “Are there people that are in your system? When did they get in there? Are they still in there? And how do you get them out?”
It costs a lot of money to answer those questions. Cyber insurance can take care of the costs of notifying customers and giving them credit protection. “Just generally needing to clean up the mess that’s been created,” says Tyler Moore, a computer science professor at Southern Methodist University.
But these policies have limits.
"The reputational damage to a company following a high-profile breach, for instance, is not typically covered," he says.
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