On October 25, 2016, the Federal Trade Commission released a guide for businesses on how to handle and respond to data breaches. The 16-page guide details steps businesses should take once they become aware of a potential breach. The guide also underscores the need for cyber-specific insurance to help offset potentially significant response costs.
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A panel of the Fourth Circuit confirmed that general liability insurance policies can afford coverage for cyber-related liabilities, and ruled that an insurer had to pay attorneys’ fees to defend the policyholder in class action litigation in Travelers Indemnity Company v. Portal Healthcare Solutions, No. 14-1944.
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On December 10, 2014, the New York State Department of Financial Services announced that it issued an industry guidance letter to all Department-regulated banking institutions announcing the Department’s plans to expand its information technology examination procedures to increase focus on cybersecurity.
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On June 5, 2014, new OpenSSL vulnerabilities were announced and the same week the Department of Justice detailed the financial damage of one version of sophisticated malware. Because technological solutions alone may not eliminate cyber risk, a proactive approach to address cyber risk should include an evaluation of risk transfer mechanisms, such as insurance.
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