Adjusting Insurance Coverage to Meet Shifting Cyberattack Risks

Risk Management Magazine

PUBLISHED ON: October 1, 2015

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These days, keeping up with all of the recent examples of cyberattacks seems almost impossible. They continue to strike at an amazing clip, with some far worse than others. The attacks tend not to discriminate—they regularly hit individuals, businesses, hospitals, universities and other institutions.

For those in the risk management business, the insurance focus over the past several years has mainly been fixed on the potential liabilities of a cyberattack. This certainly has proven wise given the recent ruling by the United States Court of Appeals for the Seventh Circuit. In that case, retailer Neiman Marcus had been attacked by hackers who were able to access customer account information and was subsequently sued by its customers for harm arising from the hack. The federal trial court dismissed the action, finding that the plaintiffs did not have legal standing to maintain their lawsuit as they suffered no recognizable injuries.