The Art of (Cyber) War

Kevin R. Doherty

Kevin R. DohertyToday’s political climate is rife with reminders about the importance of data privacy and cybersecurity. According to the World Economic Forum’s 2017 Global Risks Report, the greatest technological risks facing the world include large-scale cyberattacks and massive incidents of data fraud and data theft. And it’s no secret that companies can lose millions of dollars, and the loyalty of their customers, when their data is stolen. It is thus increasingly important for companies, large and small, to obtain adequate insurance coverage to protect against these risks. But are all cyberattacks covered under your policy, and what happens if a cyberattack is considered an act of war? The answers depend, and they could make the difference in your company’s survival. Continue reading “The Art of (Cyber) War”

Managing Cyber Risks: Tips for Purchasing Insurance That Works for Your Business (Part 1)

Omid Safa, James S. Carter, and Jared Zola

Safa, OmidCarter, James S.Zola, Jared With information technology impacting nearly every aspect of commerce in our “wired” economy, few issues present more concern to businesses today than cybersecurity. Cyberattacks continue to proliferate at an alarming rate and the threats facing companies continue to evolve and become more sophisticated with each passing day. The legal and financial costs associated with such events also grow more serious, as legislators, regulators, and customers insist on greater protection and impose more stringent requirements. Meanwhile, insurance companies have sought to limit the coverage available under traditional insurance policies with new exclusions aimed at cyber-related risks. As a result, it has become imperative for organizations to reevaluate their cybersecurity protocols and breach response plans—and their insurance coverage assets to help offset losses and liabilities associated with such events when all other safeguards fail. Increasingly, this means that companies must consider purchasing cyber-specific coverage to insure against these emerging risks and address the potential gaps in their traditional insurance programs. Continue reading “Managing Cyber Risks: Tips for Purchasing Insurance That Works for Your Business (Part 1)”

The Ins and Outs of Cyber Extortion Insurance Coverage

James S. Carter

Carter, James S.According to FBI data, cyber-criminals are on pace this year to collect approximately $1 billion through cyber extortion. This is a practice in which extortionists threaten to cripple a computer system or obtain and/or release confidential information unless their demands (usually for money) are satisfied. Although much of this money is coerced from individuals in increments of several hundred dollars, more and more organizations are finding themselves in cyber extortionists’ crosshairs, including documented incidents against local governments, schools, hospitals and businesses in a range of industries. As cyber extortionists increasingly target organizations rather than individuals, security professionals fear the costs of cyber extortion incidents could dramatically increase. Continue reading “The Ins and Outs of Cyber Extortion Insurance Coverage”

How to Use the Attack on Dyn to Improve Your Companies’ Cyberinsurance

James S. Carter

Carter, James S.October was National Cyber Security Awareness month. The goal was to raise awareness about the importance of cybersecurity. That message was underscored on October 21, 2016, when attackers staged a massive cyberattack against Dyn, a company that provides services that help Internet users connect to Dyn’s customers’ websites. The attack on Dyn had the effect of disrupting access to major websites, such as Twitter, Netflix, and The New York Times, as well as perhaps lesser known but no less critical websites that many companies rely on for hosted services that they use to operate their businesses. Continue reading “How to Use the Attack on Dyn to Improve Your Companies’ Cyberinsurance”

Insurance Liability, Risks, and Options in Augmented Reality: Catch ‘Em All

Kevin R. Doherty, Kevin J. Bruno and James S. Carter

Kevin R. Doherty Kevin J. Bruno Carter, James S.The rising Pokémon Go sensation has dramatically increased the popularity of augmented reality games, but it has also brought with it increased risks and liabilities for both game users and developers alike. For those who don’t know, Pokémon Go is a mobile app that, although released just last month, has already been downloaded over 75 million times, generated more than $75 million in revenue, and boasts daily usage statistics that have exceeded Snapchat, Twitter, Instagram, and Facebook. It’s a location-based augmented reality game that allows users to partake in virtual scavenger hunts. Using the user’s GPS and mobile camera, players are encouraged to explore their surroundings, seek out animated characters in real world places, and “catch ‘em all.” The characters are overlaid on the player’s screen and displayed as if they exist in reality. Unfortunately, distracted players on the hunt can end up wandering (or driving) into places they shouldn’t be, and becoming injured or injuring others as a result.

The number of Pokémon Go calamities increases daily, with incidents ranging from the mundane to the absurd and dangerous. In the few short weeks since its debut, users have experienced or caused numerous personal injuries, property damage, and car accidents. Some users have become stuck in trees and locked in cemeteries, while more serious incidents involve users straying onto train tracks, falling off cliffs, or entering restricted nuclear power facilities—all while on the hunt for Pokémon characters. Still others in pursuit of Pokémon have trespassed on private property, and some users have even been robbed after being targeted and led to specific locations using the app. Continue reading “Insurance Liability, Risks, and Options in Augmented Reality: Catch ‘Em All”

Do You Have Insurance for Drone Liabilities?

James S. Carter

Carter, James S.Unmanned aerial vehicles, popularly known as drones, present enormous commercial potential for companies seeking to use this new technology to collect data. Drones are currently used for data collection in a number of fields. For example, farmers use drones to collect crop data, oil companies use drones to explore for oil and gas, surveyors use drones to create maps, and sports teams use drones to analyze practices. Numerous other industries will find uses for drones as regulatory barriers are relaxed.

Drones also present certain risks. Drones obviously pose the risk of colliding with objects and living things. Fortunately, the insurance industry has started to introduce specialized insurance coverage for these types of risks. And technological developments, such as sense-and-avoidance technology, promise to enhance drone safety. Continue reading “Do You Have Insurance for Drone Liabilities?”

Does Your Company’s Cyber Risk Insurance Cover Cyber-Related Bodily Injury and Property Damage?

James S. Carter

Carter, James S.A recent article in the Wall Street Journal highlights a widespread cybersecurity threat that it reports has generally gone unrecognized: the vulnerability to cyberattacks of the underlying control systems that power and cool data-center networks.[1] These same types of systems, which include generators, thermostats, and air conditioners, are also found in commercial buildings and factories.[2]

The article reports that a cyberattack involving controloverheated_shutterstock_162410045 systems has the potential to take down an entire operation.[3] It could also endanger human life.[4] While these risks are not new, the article notes that security personnel at many companies do not realize that such systems may be connected to the computer system or the internet, and thus exposed to a cyberattack.[5] In fact, the article reports, such systems often lack basic security protocols, such as user names or passwords.[6] Continue reading “Does Your Company’s Cyber Risk Insurance Cover Cyber-Related Bodily Injury and Property Damage?”