Losses Incurred in a Data Breach: How the Courts Are Determining Liability for Insurers
Posted in Legal Alerts on January 6, 2023
Companies and their customers have increasingly fallen victim to cybersecurity incidents. Hackers have found numerous ways around safeguards to perpetrate frauds, which have caused large losses to companies. Not only have their own assets been stolen, but defrauded customers are also filing lawsuits against companies that have suffered cybersecurity incidents. As a result, companies have to incur large expenses to defend against these lawsuits. The first thing they often do is look to their insurance company to cover the losses and defend them against the claims; but if a dispute arises, courts do not take a uniform approach in determining whether these kinds of losses are covered.
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