The constant threat of cyberattacks presents many and varying challenges for businesses. Insurance provides one way to deal with them. Because the market for insurance covering these risks and the law interpreting these policies both continue to develop, this is an area in which attorneys can help clients by maximizing their opportunity to secure the broadest possible coverage.
A look at federal and state action on cybersecurity risks provides some critical background. President Obama issued his Executive Order on Improving Critical Infrastructure Cybersecurity in February. In October 2011, the U.S. Securities and Exchange Commission’s Division on Corporate Finance issued relevant guidance on financial-disclosure obligations concerning cybersecurity issues in CF Disclosure Guidance: Topic No. 2 — Cybersecurity.
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