Home Depot has $105 million in cyber insurance to cover data breachPosted On: Sep. 14, 2014 12:00 AM CST
Home Depot Inc. has a total of $105 million in cyber coverage, with American International Group Inc. providing the first layer of $10 million of primary coverage above its self-insured retention, market sources say.
Above the AIG layer is $10 million each from two Zurich Insurance Group Ltd. U.S. and international units; $15 million from Liberty Mutual Insurance Co.; and $10 million from a unit of Houston-based HCC Insurance Holdings Inc., sources say.
Above that are two $25 million layers of coverage written on a quota share basis, sources say. Home Depot has a self-insured retention of $7.5 million, they say. Home Depot has $20 million of primary directors and officers liability coverage with Chubb Corp., with at least another $250 million of coverage elsewhere in the market, according to a market source.
A Home Depot spokesman said the company would not comment on its cyber or D&O insurance coverage. Spokesmen for AIG and Houston-based HCC declined to comment. Spokesmen for Chubb, Liberty Mutual and Zurich could not immediately be reached for comment.
Atlanta-based Home Depot confirmed earlier last week it had been breached, which it said potentially could affect customers using payment cards in its 2,200 U.S. and Canadian stores. The retailer said there is no evidence that its customers' debit card PIN numbers were compromised.
Home Depot said in its announcement that its continuing investigation is focused on “April forward” and that it has taken “"aggressive steps” to address the malware that infected its payment systems and to protect sensitive consumer data.