“Cybersecurity: Does Your Company Have Insurance For Claims Arising Out Of An Alleged Data Breach?”

Posted on November 9, 2012 by Scott Godes 2 comments

HospitalityLawyer e-magazine recently published an article that my former colleague, Ken Trotter, and I wrote regarding insurance coverage for data breaches and cybersecurity risks. It’s in the November 2012 edition of the magazine. We discuss risks relating to data breaches, cybersecurity, and privacy, as well as what insurance might apply to provide coverage for those risks. The article is focused on cyberrisks and insurance coverage for the hospitality industry.

The article’s lede is:

Cybersecurity risks, including data breaches, are among the most significant risks facing any company in the hospitality industry that receives what may be characterized as personally identifiable information, including credit card information. When hackers, rogue current or former employees, or others steal or otherwise gain access to such personally identifiable information, the data breach may expose the company to liabilities under statutory and regulatory schemes and to third parties, resulting in significant costs to mitigate, remediate, and comply with the obligations arising out of the liabilities.

We then discuss insurance coverage for data breaches, cybersecurity risks, and other privacy-based risks. We analyze coverage under commercial general liability (CGL) insurance policies and crime insurance policies, and provide comments and pointers regarding the scope of coverage under cyberinsurance policies.

If you are interested in reading the entire article, please click here and check out the article starting on page 8.

An archived version of the article, via the Internet Wayback machine, may be found here.

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