Aggressive Counter-Measures v. Hackers May Risk Cyber-Insurance Coverage

Responding to increasingly dangerous and potentially expense cyberattacks, some companies are taking aggressive counter-measures that may either cross the line and themselves violate the law or inadvertently result in liabilities that insurance carriers may or may not be willing to cover. (One example: A company plants false information on its site in order to ensnare or thwart hackers. What happens if an innocent third party suffers loss after relying on that information?) Attorney Alan Borst of Willie Borst ADR, in a guest post in the D&O Diary, takes a look at this recent twist in the evolving strategic battle between companies and hackers.