The dawn of SEC-required cyber disclosures seems sure to increase litigation, as we’ve reported.
Could the kind of cyber risk management now required by most cyber liability insurers provide some protection from the plaintiff’s bar? Liberty Mutual thinks so. “Cyber risk management strategies can help mitigate the likelihood of falling victim to an attack; but they can also be a form of legal defense in the aftermath of an attack: ‘It’s harder to argue that your company was negligent just because you suffered an event. If you deployed the same best practices as your peers in the industry, that could meet that threshold of reasonableness from a risk management perspective,'” said Patrick Thielen, global head of cyber, Liberty Mutual Insurance, in this report.