Monthly Archives: June 2016

Revisiting Cyber Insurance: Are You Covered?

Increasingly, companies are looking to insurance to help manage their cybersecurity risks and defray losses sustained from data breaches.  Losses can range from reputational damage, business interruption, and professional fees for computer forensic services and attorneys to handle regulatory inquiries or lawsuits.  In the event of a data breach or other cyber incident, recent rulings suggest that traditional insurance policies, like a company’s Commercial General Liability Policy (CGL), may provide coverage, or, at the very least, a defense to lawsuits spawned by cyber events. How do you know if you are covered under traditional policies?  First, carefully review the language …

[ CONTINUE READING ]

Will Privacy Enforcement Actions Impact “Reasonable” Security Measures Needed to Protect Trade Secrets?

In widely-publicized, contested privacy cases last year, the FTC advocated in favor of a high baseline for information security measures.  Among the security practices attacked by the FTC as critical mistakes by companies suffering data breaches: Storing sensitive data in readable text; Any system that permits the use of easily-guessed passwords; Failure to use firewalls between internal systems, the corporate network and the Internet; Lack of adequate administrative security policies and procedures; Failure to adequately restrict third-party vendors from network and corporate servers; Failure to employ reasonable measures to detect and prevent unauthorized access; and, Failure to follow proper incident …

[ CONTINUE READING ]

Private Bankrolling of Defamation and Privacy Suits

The New York Times recently reported that famed Silicon Valley investor and PayPal co-founder Peter Thiel has been secretly bankrolling “Hulk Hogan’s” (real name Terry Bollea) invasion of privacy suit against Gawker Media. The lawsuit concerns the publication of a sex tape involving Mr. Bollea and the then-wife of one of his friends. Yuck. Double yuck that Gawker saw fit to publish the tape on its site. The yuck factor and legal merits of the suit aside, Mr. Thiel’s involvement could be a game changer. For more than 50 years, American defamation law has been tilting decidedly in favor of …

[ CONTINUE READING ]