Litigation Associate Craig Hoffman commented on cyber liability insurance in the August 2011 issue of Cincy, a magazine for business professionals.
Businesses face the continuing risk and expense associated with data breaches, and because most commercial general liability policies do not provide coverage for data breaches, choosing the right cyber liability insurance product is important.
One component of the cost companies incur following a breach is complying with the breach notification laws of 47 different United States jurisdictions. “It’s time consuming and not very easy for the company going through the breach to figure out without spending a lot of money,” says Hoffman.
But this should not deter companies from proper risk management, Hoffman cautions. “It’s not a matter of whether you will be breached, but when you will be breached,” Hoffman says. “And not having a plan in place makes the first time you get breached a nightmare, if you’re not ready.”
Cyber risk can be mitigated by performing risk assessments, managing data safely, and having plans in place to respond to a breach.
“It’s kind of one part technology, one part diligence and effort,” Hoffman says.