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Is Cyberinsurance Right For You?

By Ian Bush

PHILADELPHIA (CBS) -- From Home Depot to Target, P.F. Chang's to Michael's, data breaches have turned millions of people into victims. A type of insurance designed to protect companies and consumers alike is gaining popularity, but is it right for you?

For accountholders and businesses that swipe or take check payments, data theft is becoming an inevitability.

"If you can say to someone, 'the information you give me is important. I'm protecting it the best I can. But incidentally, I also have a policy that if something does happen, I have coverage for you.'" With cyberattack insurance. Scott Hartzell heads Hartzell Insurance in Hatfield, Montgomery County.

"The companies have vulnerability, the consumer has vulnerability, but they can protect themselves for a very nominal charge."

Often, he says, insurers will allow you to purchase coverage under your homeowners policy to cover loss, damage, and other costs above and beyond what the hacked company would cover.

For those businesses, cyberinsurance can help with data forensics and customer notification and credit monitoring. The price tag for Target after its breach? $90 million. Cyberinsurance has covered a little over half of that.

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