Lloyd's of London Backs Insurance Against Hackers

PARIS (07/10/2000) - Security consultancy Counterpane Internet Security Inc. is offering customers of its managed security monitoring service the savings of 20 percent to 40 percent on insurance against the risk of losing revenue or critical information through network security breaches, the company announced Monday.

The two policies, covering e-commerce and Internet security, are backed by the insurance market of Lloyd's of London, the company said in a statement.

The Internet Asset and Income Protection Coverage policy provides insurance for loss of data, including customer lists and credit card records resulting from a breach of security or technology failure, while the Internet Asset and Income Protection Warranty Plan allows Counterpane's customers to extend the same guarantee to their customers in turn.

Prices for the insurance will be set by the insurers at Lloyd's. Premiums will typically range from US$20,000 to $75,000 for $1 million to $10 million of coverage. The actual premiums will be dependent upon the company's revenue and the level of risk involved, taking into account security infrastructure, procedures, industry hazard and scope of operation.

Underwriters can offer customers of Counterpane's monitoring service rates 20 percent to 40 percent lower than alternative coverage available in the marketplace, the company said in a statement.

But the insurance policies are no substitute for good security, according to Miles Johnstone, a director of London-based insurance arranger SafeOnline Ltd., which helped created Counterpane's insurance program.

Managed security services such as Counterpane's ease insurance underwriters' concerns about the level of risk they are taking on, according to Johnstone.

"You have got to have a certain amount of technology in there for underwriters to accept the risk," he said.

However, "for startups without much money for protection technology, insurance can provide a valuable alternative," he said.

SafeOnline arranges cover for Counterpane's customers through RK Harrison Insurance Brokers Ltd. Only accredited brokers such as RK Harrison can place risks in the Lloyd's insurance market, although changes in Lloyd's rules mean that from Jan. 1, 2001, SafeOnline will be able to access the insurance market directly.

Counterpane Internet Security, in San Jose, California, can be reached at +1-408-260-7500 or on the Web at http://www.counterpane.com/. SafeOnline, in London, can be reached at +44-20-7816-6343 or on the Web at http://www.safeonline.com/.

Join the newsletter!

Error: Please check your email address.

More about CounterpaneCounterpane Internet SecurityLloyd's of LondonRK Harrison Insurance BrokersSafeOnline

Show Comments
[]