A recent lawsuit alleging St. Jude Medical failed to place adequate safeguards on the remote tracking capabilities of its pacemakers highlights the risks faced by companies that make wireless products connected to the so-called internet of things.
Manufacturers of IoT products live with the ever-present specter of hacking, which can result in the theft of sensitive consumer data or potentially cause the devices to malfunction and cause property damage, serious bodily injury or even death. Unfortunately, experts say, no single insurance policy currently on the market will tackle all the potential exposures faced by internet of things companies.
"It is a dangerous time for a lot of policyholders because they are being steered by insurance market forces into gray areas of coverage," said Joshua Gold, a cyberinsurance attorney at Anderson Kill PC.