The vulnerability of computer networks was tested in mid-August, first by a new “worm” program, then by the record-setting power blackout that hit the Northeast, and has highlighted the need for cyber-insurance, according to industry observers

The vulnerability of computer networks was tested in mid-August, first by a new “worm” program, then by the record-setting power blackout that hit the Northeast, and has highlighted the need for cyber-insurance, according to industry observers

The vulnerability of computer networks was tested in mid-August, first by a new “worm” program, then by the record-setting power blackout that hit the Northeast, and has highlighted the need for cyber-insurance, according to industry observers. “The reality is that traditional insurance does not cover this type of risk in many cases,” said Ty Sagalow, COO of AIG eBusiness Risk Solutions. A new report from the Insurance Information Institute, based on a survey by Ernst & Young, showed that 33 percent of companies thought they had coverage for these risks, but did not; and 33 percent knew they didn’t have the coverage.

COPYRIGHT 2003 Axon Group

COPYRIGHT 2003 Gale Group