No Surprise - Cyberinsurance Impacted by Cyberattacks!

31 May 2019 Internet, IT & e-Discovery Blog Blog
Authors: Peter Vogel

Darkreading.com reported that “As cybercrime continues to rise, cyber insurance has businesses reconsidering their coverage. Organizations faced with a decision to take out coverage need to find space in the budget for monthly costs and potentially large premiums.” The May 30, 2019 report entitled “Caveat Emptor: Calculating the Impact of Global Attacks on Cyber Insurance” posed these questions:

But can cyber insurance do enough to limit the fallout for the victims of ransomware attacks?

If not, how can proactive businesses ensure they are financially protected after a breach?

Also these comments about cyberinsurance were included in the report:

The ripple effect of this could go beyond the claims sector, and, in the long run, have a connected impact on security research, and potentially free press and journalism.

Traditionally, researchers have had the freedom to comment and even speculate on the attribution of cyberattacks through information on the attackers' behavior and the attack signatures they use.

If insurance companies and claims handlers begin using public research as a reason to deny coverage to victims, research teams could be put in an ethical bind when faced with the realization that the results of their investigative work could exacerbate victims' woes.

They may be reluctant to share their findings, due to fear of being pulled into legal proceedings by giving insurers a possible reason to withhold coverage.

The net effect might end up reducing the amount of public research and the transparency of the industry overall.

What do you think?

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Authors