Francis Kean, an insurance professional, recently spoke at the Advisen Cyber Liability Insights Conference, discussing how companies need to take cyberattacks more seriously and explaining guidance from the Securities and Exchange Commission about cybercrime, reported National Underwriter.
"The SEC guidance is a useful wake up call to the risks of data breaches for boards everywhere, but they now have a delicate balancing act," Kean said at the conference. "The problem with exposing cyberbreaches is you don’t want to provide a route map to hackers or potential plaintiffs down the road, but you also don’t want to expose yourself to a shareholder class action."
A few of the tips from the SEC in reference to cyberattacks include making a pre-attacks exposure analysis, reporting cyber incidents, showcasing exposure to cyber risks businesses face, documenting legal proceedings and considering financial impacts, reported the source.
Another way businesses are able to protect themselves from cyberattacks is by purchasing professional liability insurance, which helps companies deal with problems such as data breaches that lead to the loss of customer data.
One company that recently suffered from a data breach is Blue Cross Blue Shield of Tennessee, which settled with the Department of Health and Human Services for more than $1 million in damages.