In brief - General liability policies may not cover
cybersecurity risks adequately
The media attention given to Sony's cyber attacks is a
timely reminder of the risk of information security breaches. All
businesses, large and small, should check that their insurance
policies provide adequate coverage for cybersecurity risks and
ensure that they have proper risk management processes in
place.
Be aware of over reliance on commercial general liability
policies
The cyber attack on Sony Pictures in November 2014 highlights
the risks companies face in respect of information security
breaches, and the need for companies to consider cybersecurity
insurance. The cyber attacks on Sony Playstation in April 2011
provide a clear example of the way in which various insurance
polices will respond to information security breaches, and raise
concerns that many entities may be overly reliant on inadequate
commercial general liability policies.
