Cyber-Crime Liability and Insurance
State Bar of Michigan Insurance and Indemnity Law Section, Volume 11 Number 3, July 2018
4 Pages Posted: 7 Aug 2018
Date Written: July 18, 2018
Cyber Crime is an emerging risk evidenced by a plethora of news stories of hacking involving Equifax, Yahoo, Target, J.P. Morgan, American Express, Kmart and many other companies. The purpose of this article is highlight effective procedures to protect a company or law firm against the theft of its data. Law firms and companies should make a thorough review of their computer use policies including training to ensure that employees have no expectation of privacy in using company computer systems. Computer-specific polices provide specific grants of coverage. These polices often limit coverage to bad acts of persons who are not authorized to use the computer and therefore exclude acts by employees. Another limitation draws a distinction between fraudulent data and fraudulent entry of data. A question facing cyber crime insurance is the issue whether the injury comes within the definition of property damage. Law firms are prime targets for cyber crimes. It is your data that cyber criminals and hackers want. Training is needed to avoid negligent handling of documents by attorneys or employees that can compromise a case in disclosing confidential information. Advancement in computer technology creates new kinds of insurance risks, new coverage issues and therefore new policy forms and terms. The first line of defense in protecting company or law firm data is to create an effective computer policy against theft of its data by its own employees.
Keywords: Cyber Crime, Cyber Insurance, Hacking, Cyber Extortion, Data Breach
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