A view from risk management professionals…:
[…] Covering the risk of bodily injury was not [previously] a concern for the cyber insurer or insured. But thanks the Internet of Things, bodily injury is a very real risk from certain cyber crimes. Concerns about criminal mischief prompted California lawmakers to require security on every device connected to the internet, he said.
Cyber criminals can threaten the very existence of companies. Gold said a medical practice in Minnesota shut down after it was hacked. The physicians spent days manually calling patients to cancel appointments, he said.
Even the risk of cyber attack are well known, organizations don’t always manage the risk well.
Ewing said cyber is becoming an increasingly important risk for directors and officers’ coverage. He said shareholder lawsuits closely follow any data breaches suffered by pubic companies. Meanwhile, “the Securities and Exchange Commission has not made it a secret that they are going after any company that hasn’t been diligent about cybersecurity.”