May 12, 2016
It’s estimated that the average total cost of a single cyber attack is $6.5 million. This daunting figure has led companies to review their insurance coverage for cyber attacks, or setting up a policy if there is not one in place.
In the article “Does Your Company Have Cyber-Insurance,” InsideCounsel
looks to senior associate Ken D. Kronstadt
to explain the importance of cyber insurance in a technology-driven world.
Recent trends in the use of the Internet of Things could lead to more risk for hacking requiring cyber insurance to become mandatory for certain companies and governmental entities. “Unfortunately, the bad guys are very good at coming up with new ways to expose cyber vulnerabilities,” Kronstadt said.
Kronstadt also explained that companies should be encouraged to take a holistic approach to cyber-security. “Given that risks are constantly changing and potential exposure is kind of a moving target, securing a network and getting appropriate insurance are vital first steps.”