Should Your Company Buy Cyber Insurance?

The Internet presents a variety of risks for companies, including systems crashes, hacking attacks, security breaches, and the mishandling of private information. While companies should do all they can as a matter of policy, practice and technology to prevent such risks from coming to fruition, there is no such thing as perfect prevention. Accordingly, as a backstop, companies would be prudent to procure appropriate insurance for their cyber risks. A variety of insurance products to address cyber risks have entered the marketplace for the past decade. And, according to recent press reports, the demand for cyber insurance has surged in recent months in the wake of some noteworthy data breaches and an increase in privacy claims. And the reported good news is that the rates charged for some Internet-related insurance has come down recently. In the mix, certain coverage limits have been raised and some deductibles have been lowered. Insurance policies still could evolve in this relatively new area as information technology grows and changes. Indeed, the recent social media explosion could result in new risks that may call for even newer insurance products. Companies would be better off safe than sorry and they should seek insurance that matches up with the profile of their cyber risks. Related Resources: Law Firm Apps: Should You Make an App for That? (FindLaw’s Technologist) Top 5 Essential iPad Apps for Lawyers (FindLaw’s Technologist) Effective Tips on How to Use Social Media Marketing (FindLaw’s Technologist) Facebook’s (Failed) Stealth Attack on Google (FindLaw’s Technologist)

See more here:
Should Your Company Buy Cyber Insurance?

Twitter Follow

Follow us on

Contact Us

ATTORNEY ADVERTISEMENT:  This communication or portions thereof may be considered "advertising" as defined by Section 6157(c) of the California Business and Professions Code or within the jurisdiction in which you are viewing this.  Nothing in the discussion above is intended to be a representation or guarantee about the outcome of any legal proceeding in which you may be involved.  By providing the information above in this format, Michel & Associates is not soliciting you to hire it to handle a specific legal matter you may currently have or be anticipating commencing in the future.  Notwithstanding the discussion above, you should not act or refrain from acting on the basis of any content on this site without seeking appropriate legal advice regarding your particular circumstances from an attorney licensed to practice law.  This communication is informational only and does not create an attorney-client relationship between you and Michel & Associates.  Michel & Associates's attorneys are licensed to practice in California, Texas, and the District of Columbia.