The shockwaves continue from the October 6, 2015 ruling of the Court of Justice of the European Union (CJEU), the European Union’s highest court, invalidating the U.S.-EU “Safe Harbor” data transfer regime in a controversy arising out of Maximillian Schrems’ complaint to the Irish Data Protection Commissioner. The Schrems decision obviously has huge privacy implications for companies that transferred data under the Safe Harbor regime, but it may also impact such companies’ cyber insurance.
The data breach earlier this month that potentially exposed information about millions of federal government employees is yet another reminder that any organization that maintains data is at risk of being hacked. And rest assured that if you get hacked, you will incur substantial costs as a result, including substantial notice and related costs and potentially massive third-party liability claims.
We have written extensively about so-called “cyber” insurance, including how cyber insurance is neither comprehensive nor standardized. As a result, when you are shopping for your first (or next) cyber policy it is important to understand what types of coverages, exclusions and conditions are in the market. Making a well-informed purchase starts with knowing your options.
There are too many differences between cyber policies to cover in one blog post, and the market, still in its youth, is rapidly evolving. But here is a list of five important things—in no particular order—to consider when you’re in the market for cyber insurance: READ MORE