Looking At Angles Of Liability After A Cyberattack

Law360, New York (January 28, 2015, 11:35 AM EST) -- All employers have personnel data on their information technology systems and devices. This data includes personally identifiable information such as names, addresses, birth dates and Social Security numbers of employees and their family members. In light of high-profile, employee-led lawsuits like those stemming from cyberattacks at Sony Pictures Entertainment Inc. and the University of Pittsburgh Medical Center, employers are rightly concerned about the security of their data and the potential liability (and attorneys' fees) that could result if they are hacked and personnel data is leaked. As with any business risk, employers should consider whether this risk is or could be insured. To answer some questions about employer liability for the hacking of personnel data and about the potential for insurance coverage, we put these questions to a lawyer practicing in the cyber and insurance arenas....

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