Issues To Consider When Evaluating Cyber Coverage In Light Of The CCPA And Other State Privacy Laws

With the expansion of privacy legislation—from the General Data Protection Regulation (GDPR) in Europe to the coming California Consumer Privacy Act (CCPA) in the United States—cyber liability insurance is taking on increased importance. This post discusses key issues companies should consider as they review their cyber coverage in light of changing legislation and increased litigation risks. Companies should act now to ensure they have sufficient cyber coverage in place before the CCPA goes into effect on January 1, 2020.

Covering costs related to data breach response and recovery and data breach- and privacy-related enforcement actions and litigation presents challenges. Worldwide, as of April 2019, the average total cost of a data breach was $3.92 million.¹ The average total cost of a data breach in the United States was $8.19 million.² The costs of enforcement actions can be similarly significant in terms of monetary penalties and secondary costs. Without adequate