Cybersecurity
Equifax's Insurance Is Likely Inadequate for Breach
- Company has said its policy may not be adequate for all risks
- Beazley is said to be among insurers on hook for some of costs
What Is Known So Far About the Equifax Data Breach
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Equifax Inc.’s insurance against cyber breaches is likely inadequate to cover the credit-reporting company’s costs tied to one of the biggest hacks in history, according to people familiar with the coverage.
The company holds a policy that would probably cover about $100 million to $150 million, with costs shared by carriers in the London market and elsewhere, said the people, who asked not to be identified discussing a private contract. Though Equifax’s eventual expense may not be known for years, it could be multiples higher than the insurance payout, given what the company has disclosed and the costs at hacking victims like Yahoo and Target Corp., they said.