MGM Resorts covered by insurance for now, says JMP Securities

MGM Resorts shares are down 6% since the start of the hack, but JMP Securities analyst Jordan Bender tells investors in a research note that the firm believes MGM has a $200M cyber insurance policy covering ransom payments and business interruption. If the breach is fully covered within the policy, MGM will incur minimal costs along the way, and see insurance premiums go up, but would amount to a drop in the bucket for the company, the analyst says. The firm made no change to its Outperform rating or $60 price target and said fundamentals for the quarter had been positive prior to the business disruption.