Counterpane Launches Security Insurance Program

Counterpane Internet Security Monday unveiled an insurance program backed by Lloyd's of London that offers customers coverage against loss due to security breaches.

Counterpane, a managed security monitoring firm based here, says the insurance program offers up to $100 million in coverage.

The company says its customers will have access to two types of insurance coverage. One provides insurance for loss or damage to information assets due to a security breach or technology failure and also covers interruption of business due to loss of use from the security breach. The other program is an insurance-based warranty plan that allows Counterpane's clients to extend the information-asset coverage to their customers.

Many insurance companies are offering policies to protect companies against data breaches that harm online business. Ace Insurance of North America, American International Group and the Chubb Group of Insurance Companies offer e-business protection. Internet Security Systems, Atlanta, teams with J. H. Marsh & McLennan to offer e-business coverage.

Counterpane says it collaborated with insurance brokers Frank Crystal & Co. and SafeOnline to design the insurance policies, which gained backing from Lloyd's of London.