Author Archives: Stephen Faraci

Stephen Faraci

About: Stephen Faraci

Steve is a seasoned trial lawyer and co-chair of the firm's corporate governance litigation section. Steve provides counsel to businesses on a wide variety of legal issues, including contract, real estate, construction, and insurance coverage disputes.

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 ]

The Cybersecurity Information Sharing Act of 2015

Protecting the Public from Cyber Threats or Unwanted Surveillance? On December 18, 2015, President Barack Obama signed the much reported omnibus spending bill, which keeps the government running for another year. The controversial Cybersecurity Information Sharing Act of 2015 (“CISA”) was included as a rider to the omnibus spending bill. CISA seeks to create a voluntary cyber threat information sharing process between industry and the federal government. CISA requires that the Department of Homeland Security (“DHS”) develop a process for the federal government to accept cyber threat information from any entity and ensure that appropriate federal entities (i.e., the FBI …

[ CONTINUE READING ]

Are Your Directors Talking Enough About Privacy and Data Security?

The number of companies suffering data breaches, and the average cost associated with each incident, continues to rise. According to the Ponemon Institute’s 2014 Cost of Data Breach Study: Global Analysis, the average consolidated total cost of a data breach rose to $3.8 million in 2014, which is a 23 percent increase compared to 2013. With the number of and costs associated with data breaches on the rise, corporate fiduciaries–directors and officers–need to be attuned to their company’s privacy and data securities policies and controls. Good corporate governance, meaning the system of rules, practices, and processes by which a company …

[ CONTINUE READING ]