Equifax Cyber Insurance Won’t Cover The Hit

The expense of the breach could be “ multiples higher than the insurance payout,” according to unnamed sources said by Insurance Journal to be familiar with the coverage. The company itself had only a brief comment after the hack: “Equifax carries cybersecurity, crime, general-liability and other lines of insurance, and we have begun discussions with our carriers regarding the incident.” In an earlier annual report, however, it acknowledged that its property and business interruption insurance “may not be adequate to compensate us for all losses or failures that may occur.” The report also noted that the company’s third-party insurance coverage “will vary from time to time in both type and amount depending on availability, cost and our decisions with respect to risk retention.” Just days after the monumental hack, said to involve as many as 143 million individuals on the Equifax subject list, the company was already facing multiple state and federal investigations and a proposed class action lawsuit.