Managing Cyber Risks: Tips for Purchasing Insurance That Works for Your Business
Pratt’s Privacy & Cybersecurity Law Report
With information technology impacting nearly every aspect of commerce in our ‘‘wired’’ economy, few issues present more concern to businesses today than cybersecurity. Cyberattacks continue to proliferate at an alarming rate and the threats facing companies continue to evolve and become more sophisticated with each passing day. The legal and financial costs associated with such events also grow more serious, as legislators, regulators, and customers insist on greater protection and impose more stringent requirements. Meanwhile, insurance companies have sought to limit the coverage available under traditional insurance policies with new exclusions aimed at cyber-related risks. As a result, it has become imperative for organizations to reevaluate their cybersecurity protocols and breach response plans—and their insurance coverage assets to help offset losses and liabilities associated with such events when all other safeguards fail. Increasingly, this means that companies must consider purchasing cyber-specific coverage to insure against these emerging risks and address the potential gaps in their traditional insurance programs.
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“Managing Cyber Risks: Tips for Purchasing Insurance That Works for Your Business,” by Omid Safa, James S. Carter, and Jared Zola was published in the May 2017 edition of Pratt’s Privacy & Cybersecurity Law Report (Vol. 3, No. 4), an A.S. Pratt Publication, LexisNexis. Reprinted with permission.
This article was first published on Blank Rome’s Policyholder Informer blog on February 13, 2017. It is also the first in a series, with Part II published in the June 2017 edition of Pratt's Privacy & Cybersecurity Law Report.