Wednesday, June 07, 2017

The recent WannaCry malware attack “provides a timely reminder that hackers are endlessly inventive and have a lot of time on their hands – time they spend devising new ways to profit by creating chaos and exploiting the world’s interconnectedness,” Amy Elizabeth Stewart wrote in a recently published article on Texas Lawbook.

Ms. Stewart’s article offered advice to businesses looking to purchase a cyberinsurance policy in a rapidly evolving marketplace.

As WannaCry illustrates, “cyber security risks reach well beyond data breaches – extending to information system failures, the loss or destruction of data, cyber ransom demands, even cyber theft,” writes Ms. Stewart, Managing Principal of Amy Stewart Law.

Before purchasing a cyber policy, Ms. Stewart advises businesses take the following steps:

  •       Understand the risks insured by cyber policies
  •       Prepare to negotiate
  •       Beware of exclusions
  •       Negotiate for specific vendors on the front-end
  •       Negotiate broad coverage for ransom payments
  •       Inquire about system interruption coverage
  •       Comply with notice and consent requirements

Click here to read the entire article.

“No business is entirely immune to a cyberattack, and the potential consequences can be devastating,” she writes. “The WannaCry attack may not have unleashed a global cyber-tastrophe, but it was a clear shot across the bow to businesses. Prepare now for the next one. Because there will be a next one.”

For more information on cyber insurance, see Tips for Buying Corporate Cyber Insurance and 6 Quick Tips for Law Firms in the Market for Cyber Insurance. Ms. Stewart can be reached at amy@amystewartlaw.com.