Should Your Firm Invest in Cyber Risk Insurance?
Indiana University - Kelley School of Business - Department of Business Law; Harvard Kennedy School Belfer Center for Science & International Affairs; Center for Applied Cybersecurity Research; Stanford Center for Internet and Society; Stanford Law School
December 14, 2011
Business Horizons, 2012
Firms have increasingly been turning to cyber risk insurance to better manage the cyber threat and any resulting legal liability from data breaches. But how useful is cyber risk insurance? This Article analyzes the impact of cyber attacks on firms, some of the applicable U.S. law shaping private sector responses to data breaches, and the extent to which cyber risk insurance helps to mitigate the cyber threat. Ultimately I argue that firms must take a proactive strategy to manage cyber attacks for their competitive well-being as well as to enhance overall cyber-security and help secure critical national infrastructure.
Number of Pages in PDF File: 20
Keywords: Cybersecurity, Internet, Cyber Risk Insurance, Cyber Attack, Data Breach, Cyber Law
Date posted: December 15, 2011