According to the FBI, billions of dollars are lost every year repairing computer systems and networks hit by cyberattacks like ransomware. The 2019 Internet Crime Report notes that in 2019 alone, the FBI’s Internet Crime Complaint Center received 467,361 complaints of cybercrime with reported losses exceeding $3.5 billion. While the number of ransomware attacks has declined sharply, the amounts demanded in such attacks has increased. For example, BleepingComputer recently reported seeing ransom notes for the Ragnar Locker ransomware, which targets software commonly used by managed service providers, with demands ranging from $200,000 to about $600,000.

Some insurers selling cyber insurance offer to pay a ransom demand, which theoretically should allow the policyholder to get their data back. But what happens if you don’t have cyber insurance or the funds to pay the ransom? What if you pay the ransom and the criminals renege? If your computers and network are slowed but otherwise operable, will your traditional business owners’ insurance policy pay to replace the damaged computers and network?


Continue Reading Business owners’ insurance policy required to pay for computer damage from ransomware attack

As we gather at this time of year to express our gratitude for those people and things most important in our lives, perhaps one of the things on that list at work is that you have not suffered through a security incident or breach this past year, or ever. Indeed, this is reason to be thankful! However, when it comes to privacy and security incidents, it is not a matter of IF but WHEN. So be grateful for your good
Continue Reading What should I be doing to better manage the risk of a data breach?

Join Taft attorneys Barbara Duncombe and Bill Wagner for a complimentary seminar on the DoD cybersecurity regulations on Oct. 18 at Taft’s Indianapolis office. They will participate in an informal, interactive discussion with Richard Banta and Alex Carroll from Lifeline Data Centers and Josh Griswold and Joe Turek from Chubb concerning recent developments (including cyber breaches), evolving standards of compliance and practical, effective risk mitigation strategies. Click here to register.

Topics will include:

  • Final preparations to ensure compliance with DoD’s


Continue Reading Upcoming Seminar: Cybersecurity for Defense Contractors and Manufacturers

Savvy in-house counsel and business owners termsoften ask are whether the insurers selling cyber policies actually pay claims or whether the policyholders are just buying the right to later sue the insurers for coverage.  The initial wave of cyber insurance litigation involved policyholders trying to obtain coverage for data breaches under their standard commercial general liability policies.  This produced mixed results with some courts finding coverage, while others did not.  The next wave of cyber insurance litigation involved policyholders asserting
Continue Reading Cyber Insurance: Travelers Required to Defend Healthcare Records Storage Company From Class Actions

The marquee breaches that have occurred recently (i.e. Anthem, Home Depot, Morgan Stanley, Target, Linked In, and Sony) have helped U.S. Fortune 1000 companies understand that data security must be taken seriously.  Not only must companies invest in their data security, but they must proactively manage and protect it.  Previously, large corporations generally considered hacking attacks and general security breaches as “Force Majeure” events in that they were both unpredictable and unpreventable.  Therefore, many of the Fortune 1000 purchased cyber
Continue Reading Cyber Attacks: Small/Mid Cap Companies Beware

*This is the fifth post in a five-part series on cyber insurance, culminating in a webinar entitled “Insurance Coverage for Privacy and Data Breaches, Hot Topics and Critical Issues” on Wednesday, April 22, 2015, at 12:00-1:00 p.m. Eastern. 

A common question we often hear CEOs, CFOs, and Directors of businesses and public and private institutions ask is “What terms and conditions should I consider when buying cyber insurance?” We have compiled a list of some of the most important
Continue Reading Cyber Insurance: What Terms and Conditions Should I Consider When Buying?

*This is the fourth post in a five-part series on cyber insurance, culminating in a webinar entitled “Insurance Coverage for Privacy and Data Breaches, Hot Topics and Critical Issues” on Wednesday, April 22, 2015, at 12:00-1:00 p.m. Eastern. 

Common questions we often hear from CEOs, CFOs, and Directors of businesses and public and private institutions are “How do we determine our cyber insurance coverage needs?  In other words, how do we know that we have enough insurance to protect our
Continue Reading Cyber Insurance: How Do I Determine My Coverage Needs?

*This is the third post in a five-part series on cyber insurance, culminating in a webinar entitled “Insurance Coverage for Privacy and Data Breaches, Hot Topics and Critical Issues” on Wednesday, April 22, 2015 at 12:00-1:00 p.m. Eastern. 

Common questions we often hear from CEOs and CFOs are “what do cyber insurance policies cover and how much do they cost?”

Cyber risk insurance policies typically offer both first-party coverage (covering the policyholder’s losses) and third-party coverage (covering defense costs and
Continue Reading Cyber Insurance: What do Cyber Insurance Policies Cover and Cost?

*This is the second post in a five-part series on cyber insurance, culminating in a webinar titled “Insurance Coverage for Privacy and Data Breaches, Hot Topics and Critical Issues” on Wednesday, April 22, 2015, at 12:00-1:00 p.m. Eastern.  

When we talk with CEOs and CFOs about buying cyber insurance, we often hear them say, “I’ll just rely on my agent for the best policy at the lowest cost.” While you may have a fantastic and very knowledgeable agent,
Continue Reading Cyber Insurance: Why Can’t I Just Rely on My Agent for the Best Policy at the Lowest Cost?

*This is the first post in a five-part series on cyber insurance, culminating in a webinar entitled “Insurance Coverage for Privacy and Data Breaches: Hot Topics and Critical Issues” on Wednesday, April 22, 2015, at 12:00-1:00 p.m. Eastern. 

One of the most common questions we hear from CEOs, CFOs and Directors of businesses and public and private institutions is “Do I really need cyber insurance?”  Our answer is always an emphatic “Yes,” whether it is a
Continue Reading Cyber Insurance: Do I Really Need It?