Safety Net - New Insurance Coverage for Information-Technology Risks
The increasingly "WIRED" nature of global commerce as well as the persistent ingenuity of hackers have companies scrambling to protect themselves against liability claims arising from lost or stolen data. The first line of defense is usually technology to prevent data loss. Another response is for general counsel to allocate risk through contractual indemnity provisions. A third solution is insurance coverage. This article explores the new insurance policies being introduced to cover risks that standard general liability and errors and omission policies do not adequately address.