Businesses need as much as $1 billion of cyber insurance
Industry experts are warning that with escalating costs of cyber attacks businesses could need as much as $1 billion in cyber insurance. That upper level would be for larger companies which are currently struggling to secure coverage of more than $300,000. Last year’s attack on Target cost the company $248 million but the costs would be dramatically higher if the target was an energy company or utility. Ben Beeson of insurance broker Lockton told the Financial Times that $1 billion policies are needed but added that “The question is how do we get there and price risk, especially when the risks are changing every day.” More US firms are arranging cyber risk coverage but there is a question over the supply chain with overseas businesses less likely to have adequate coverage, potentially crippling their ability to operate if they were to be targeted. Read the full story.
University sues risk company over football coach bonuses
The University of Oregon is suing a risk management company after an insurance policy it purchased failed to cover its losses. The policy was meant to cover bonuses paid to the university’s football team coach and his team depending on how the team fared. The Lloyds of London policy was purchased for $489,940 through Arthur J. Gallagher Risk Management of Illinois in 2012 but when the university made a claim after the coaching team earned bonuses of $688,000 they were told by Lloyds that it would only cover maximum payouts and not the lower bonuses the staff had received. Read the full story.
Environmental risk in healthcare construction projects
Environmental risks in the construction or renovation of healthcare facilities have been highlighted in a new report. The ACE Group says that regulatory changes and technological advances are transforming the sector including the construction of state-of-the-art facilities. The report says that healthcare providers may have gaps in their insurance coverage if they have not assessed the environmental impact of constructing and operating their facilities. Ensuring the safety and future health of patients is of course a key consideration and the report points out the particular risk when renovating existing premises where patients are being treated while construction is taking place. This includes reputational damage if works are not carried out so as to mitigate risk to patients. Materials and systems used in the construction also need careful assessment and management to ensure that they do not increase the risk of spreading diseases. Read the full report.