Network Security Under Attack? By Bob Wallace

Computerworld, 12/31/98

Today, one way of securing company’s information beyond the technology is buying insurance. Insurance companies are starting to team with technology vendors to offer coverage for network security problems. One of the leading companies is called Cigna’s Secure Systems Insurance. Its insurance covers against computer crimes that involve theft of money, securities and property; damage by hackers to a company’s data or software; and business losses stemming from attacks on a company’s computer system. However, it does not cover bugs in software or damage done by viruses. Under the plan, a company with $100 million in revenue that buys $1 million of insurance for computer theft, another $1 million for data damage and $10 million for business interruption, with a $5,000 deductible, would pay a $25,000 annual premium.

Network security is one of the biggest concerns that most of the companies are dealing with today and in the future. There are many ways to protect crucial company’s information by using the advanced modern technology such as Firewall, Virtual Private Network and so on. However, my question is that how far it will take before an intruder breaks in. In other words, intruders are able to stay one step ahead of technology; therefore, companies can not protect their assets one hundred percent by technology. Internet security is complex and difficult to keep up with. Network solutions are never perfect. Therefore, I strongly believe that extra protection is not wasteful and because of the insurance plan, many companies will be relieved to worry less about losing their information to intruders.

Shin Jung