Cyber Liability - A New (and unknown) Exposure
At a recent conference, we learned a great deal about Cyber Liability and the costs associated with data leakage / breach / intrusion. Just the response costs can run in the hundreds of thousands of dollars, or in the case of the recent Adobe data breach, many millions of dollars. Insurance is available for this type of exposure, first and third party. Understanding Cyber Liability requires a special training and experience. Many situations require evaluation and response based upon multiple state laws, many of which conflict with others and all require great amounts of reporting and involvement. Beyond the initial response, individual claims of loss of security of personal information ("PI") can cost hundreds of thousands of dollars in legal fees according to experts in the field.
The link below to Claims Journal contains a nice summary of the playing field.