How to Protect Your Company’s Bottom Line Against Data Breach Losses Through Insurance

King & Spalding
Contact

In the wake of what seems to be daily announcements of new data security breaches and increased regulatory oversight over company information security and privacy practices, companies are looking for ways to minimize risks associated with the seemingly inevitable data security breach. In the current environment where the issue is when, not if, a company will be breached, maintaining adequate insurance to protect against the risk of data security breaches is now more important than ever. Cyber insurance is often the “last line of defense,” in the event of a breach, and regulators increasingly deem cyber insurance an essential component of a sound risk management strategy. SEC Guidance that was released in 2011 provides that companies should fully and accurately disclose cybersecurity risk factors, including a “description of relevant insurance coverage.” Further, traditional commercial general liability (“CGL”), Directors & Officers (“D&O”), Errors & Omissions (“E&O”), Crime, and other policies also may be valuable assets in the event of a data security breach.

This client alert briefly outlines issues companies should consider when purchasing cyber insurance, and also explains why traditional policies should not be left on the table in the event of a data security breach.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Written by:

King & Spalding
Contact
more
less

King & Spalding on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.