Bibeka Shrethsa quotes me in her article, “Insurers Grow Tentative About Coverage For Cloud Users”
Today, Law360 published another great piece about insurance coverage for cyberrisks, and insurance coverage for cloud-based risks in particular. In her article, Insurers Grow Tentative About Coverage For Cloud Users, author Bibeka Shrestha addresses the issue of the growth of cloud computing, risks with cloud computing, and, perhaps most important, insurance coverage for cloud computing risks.
The article opens:
Insurers are starting to scrutinize coverage for companies using third-party data services, seeing cloud providers as especially vulnerable to hacking attacks, and with cyberpolicy language constantly evolving, attorneys say policyholders should pay closer attention to whether their cloud-related losses would be covered in the event of a breach.
Last year, hackers reportedly used Amazon.com‘s cloud service to launch a cyberattack that compromised the account data of more than 77 million Sony Playstation users. But that much-publicized data breach hasn’t slowed a trend of companies turning to . . .
The article then explains risks relating to cloud computing and insurance-related issues for cloud computing risks. Ms. Shrestha quotes several people who deal with cloud computing, cyberrisks, cybersecurity questions, data breach issues, and insurance coverage for those risks and potential liabilities. The article provides helpful information to companies that are buying cyberinsurance policies for cloud-based risks in the cloud. Ms. Shrestha cites me and my advice multiple times in the article. She reiterates my advice as to people who may be involved with purchasing cyberinsurance with coverage for the cloud, what coverages well-crafted cyberinsurance policies should include, and whether “additional insured” status may be available to cloud users from cloud providers. You can see my comments and the rest of the article after the jump, with the full content available to subscribers of the Law360 site and its content.
Want to read the other opinions and thoughts offered on the subject? Then click on over to Insurers Grow Tentative About Coverage For Cloud Users to read the entire article.
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Great post. I took a look at the article, and you do raise some valid points in the piece ; however, the fact remains that this is a high risk undertaking, so I understandably agree with the cautious nature of most insurers. Servers are prone to a lot of down-time, and until the cloud computing stakeholders find a fool-proof and reliable way to stop this from happening, I’m seeing them running away from this kind of thing for the long run.
James, many thanks for reading and commenting on the article. I appreciate your thoughtful points.