Senior associate Ken Kronstadt
authored the Westlaw Journal Computer & Internet
article “Insurance Coverage for Threatened Data Breaches and Regulatory Investigations,” discussing what policyholders should know about cyber insurance policies and the types of coverage that will be available if a company is hit with a data breach or hacking event.
Recent history has shown that whenever there is a highly publicized cybersecurity incident, the fallout will likely include both a class-action lawsuit and an investigation by a regulatory agency, such as the Federal Trade Commission.
Companies facing such lawsuits or investigations will want insurance coverage for the expenses and liabilities incurred. They may assume that the policy they have in place provides that coverage, particularly if they have purchased cyberinsurance; however, that is not always the case.