The Washington Technology Industry Association (WTIA) will offer its members insurance against cyber attacks — a program that the Seattle-based organization describes as the first of its kind for a tech trade group.
WTIA’s move, announced this morning. comes amid increasing reports of security breaches at a variety of companies in health care, retail, financial services and other major sectors. WTIA, which represents 8,500 tech companies, cites a recent PwC survey showing that security incidents have grown at a compound annual rate of 66 percent year-over-year since 2009.
“Cyber theft is the fastest growing crime in the world and most employers don’t have basic solutions and processes in place to manage the risk,” said Mike Monroe, chief operating officer at WTIA, in a news release announcing the new insurance programs. He predicts that companies with large amounts of confidential customer data will soon be required to have cyber insurance.
WTIA’s Cyber Liability Protection Program will cover brand damage, business interruption and financial loss in the event that hackers are able to access confidential customer information. An entry-level policy provides $1 million in coverage, with enhanced coverage available in areas including privacy protection, multimedia protection, cyber extortion, and hacker damage.
The insurance is provided through HUB International. WTIA says packages will range from $750 to $2,500 per year.