Cyber Coverage for Financial Institutions and Other Commercial Insureds - Part II

The Director of National Intelligence has ranked cybercrime as the top national security threat facing the United States, “higher than that of terrorism, espionage, and weapons of mass destruction.” Reifying that threat, in 2013 the FBI notified 3,000 US companies—ranging from small banks, major defense contractors, and leading retailers—that they had been victims of cyber intrusions. A 2014 Global Economic Crime Survey conducted by PwC found that 7% of U.S.-based organizations lost $1 million or more due to cybercrime incidents in that year (up from 3% in 2011). Twenty percent of U.S. entities recently reported financial losses of $50,000 to $1 million in 2015. A more recent survey estimates that cybercrime will cost global business over $100 billion dollars in 2017. Who—in the absence of effective cyber-security measures that currently seem beyond the reach of business and law-enforcement—will ultimately bear the risk of these losses?  

In the second part of this seminar—conducted by Richard Mills, the managing partner of McElroy, Deutsch, Mulvaney & Carpenter, LLP in New York—the leading and latest court decisions involving cyber-coverage are analyzed to identify issues and trends of interest to any attorney who must litigate in, or counsel clients about, this burgeoning field. Additionally, it delves further into emerging risks such as crypto-currency.

Attendees should watch Part I of this program before watching Part II.

Learning Objectives:

1. Understand the scope of emerging law on crime and cyber-risk coverage
2. Analyze the leading decisions applying existing insurance coverage to these risks
3. Emphasize the need for enhanced cybersecurity