Cyber Crime and Insurance

NYSBA Torts, Insurance & Compensation Law Sec. Journal/Summer 2019/Vol 48/No 1

4 Pages Posted: 17 Oct 2019

Date Written: June 4, 2019


A data breach is a nightmare. Lawyers need to understand cyber insurance to protect clients information and their own law firms. Law firms have a special exposure when hacked because of client files with personal and other sensitive information.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.

Traditional liability insurance do not cover internet exposure and risks.The standard commercial liability policy(CGL) does not cover data related liability. Computer specific policies provide specific grants of coverage.These policies limit coverage of bad acts of persons who are not authorized to use the computer and therefore exclude acts by employees.

An excellent source for understanding cyber security is,The ABA Cybersecurity Handbook: A Resource for Attorneys, Law Firms and Business Professionals edited by Jill D. Rhodes and Robert S. Litt. (ABA Publishing, 2017). The Handbook provides guidance for attorneys in all practice areas.

Keywords: Cyber Crimes, Cyber Insurance, Data Breach, Hacking, Cyber Liability

Suggested Citation

Johnson, James A., Cyber Crime and Insurance (June 4, 2019). NYSBA Torts, Insurance & Compensation Law Sec. Journal/Summer 2019/Vol 48/No 1, Available at SSRN:

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