Local News

January 6, 2014

Essex County cyber-insured

ELIZABETHTOWN — If the National Security Agency hacks into Essex County’s computer network, it’s now covered by insurance.

County Manager Daniel Palmer said the county recently obtained cyber-security insurance to cover any cyber intrusions.

“It protects us if someone hacks into our computer system,” Palmer told the County Board of Supervisors.

He said the policy is retroactive to Nov. 19, 2013, and has a $1 million payout limit and a $25,000 deductible.

The cost to the county for a year of cyber insurance is $14,481.

Hacking computer networks is becoming more common, Palmer said, and there’s a need for the insurance.

Whistleblower Edward Snowden has revealed that the National Security Agency routinely hacks government and business computer systems as it collects millions of data records, allegedly for use in foiling future terrorist plots.

The Target department store chain was in the news recently when it was revealed that someone stole 14 million credit- and debit-card numbers and PINs from its nationwide computer system.

Cyber-security insurance is designed to mitigate losses from a variety of cyber incidents that include data breaches, network damage and cyber extortion.

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