Cyberattack Insurance Challenges Confront Energy Sector

Law360, New York (October 29, 2014, 10:46 AM EDT) -- There have been numerous cyberattacks on retail, financial and e-commerce businesses in the last year, affecting millions of customers and hundreds of millions of dollars in response costs. Now it appears the threat of a cyberattack poses an even greater exposure risk to the energy sector — and there is no comprehensive insurance coverage to respond to such an attack.

Energy companies use vast amounts of data for exploration, equipment maintenance, critical infrastructure, remote environmental controls and safety systems, as well as for optimizing exploration and production costs. This represents an exponential increase in the data points vulnerable to cyberattack. Companies...

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