In the wake of escalating cyber threats that affect both business and government operations, the issue of losses uncovered by cyber insurance has become a topic of concern amongst legal professionals. Despite the federal government having designated October as Cybersecurity Awareness Month two decades ago, to foster recognition of computer-related threats and the need for meaningful mitigation measures, still many risks continue to go unprotected by insurance policies. This information comes from a recent article on JD Supra written by Esquire Deposition Solutions, LLC.
Concerns range from the inability of insurance to cover all potential damages, such as those related to reputational harm, to questions about how businesses can make themselves more resilient to cyber-attacks. For example, businesses are advised to consider the value and viability of their ongoing operations, as opposed to relying solely on recoveries from insurance claims. They should also assess the resilience of their current security measures and the possible risks of future attacks.
At the same time, the need for legal and cybersecurity professionals to gain a comprehensive understanding about what cyber insurance covers and what it doesn’t is greater than ever. This could better prepare them in aligning their risk management measures, both on the cyber front and insurance, for a more comprehensive risk management strategy. It might not completely eliminate threats, but it will definitely limit potential damages.
The real-world effects of cyberattacks on businesses and governments highlight the increasing importance of cybersecurity, and more so, in knowing what one’s insurance policy actually provides coverage for. As technology continues to intertwine with everyday business operations, the need to understand these mechanisms becomes all the more necessary.
The ever-changing landscape of cybersecurity makes it imperative for legal professionals to keep abreast of the latest developments, seek expert advice where needed, and ensure their clients, whether major corporations or law firms, are well prepared and adequately protected.