Before Becoming the Next Target: Recent Case Highlights the Need To Consider Insurance For Data Breaches
January 23, 2014
Despite robust and sophisticated network security systems, companies remain vulnerable targets for cybersecurity breaches and the host of negative consequences that typically follow, including class action lawsuits, substantial breach notification costs and other “crisis management” expenses, including forensic investigation, credit monitoring, call centers and public relations efforts, as well as potential regulatory investigations, fines and penalties. Insurance can play a critical role in addressing cybersecurity risks. But the time to consider insurance coverage for data breaches and other cybersecurity risks is before an organization becomes the next Target.
Roberta D. Anderson of the D.C.-based law firm K&L Gates highlights recent data-breach cases and explains why it’s important for companies to consider obtaining cyber insurance.