Cyber-Insurance Can Reduce Disclosure Requirements As Well As Risk

August 28, 2013

Public companies are now required to disclose their cyber-security preparations, plans and vulnerabilities, but SEC guidance has made it clear that insurance, with attendant best practices, can mitigate those risks and consequently will also limit disclosure requirements. Coverage issues in this area are far from resolved, however, and there have already been some high-profile disputes with carriers. Companies need to look carefully at the terms of their policies to be reasonably sure they know what they have.

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