Cyber Insurance Policies Do Not Cover All Risks

To follow are examples of types of risks that are not covered or partially covered by most Cyber Risk policies:

  • The cost to implement security upgrades after an attack
  • A comprehensive written security program that is typically paired with a regulatory fine or penalty
  • Damage, corruption, or deletion of Intellectual Property
  • Audits performed periodically that are most likely required for several years after a data breach
  • Restoration of a damaged reputation of a business

For example, coverage under a Cyber Risk policy for the damage, corruption or deletion of Intellectual Property is typically limited to the cost of restoration or replacement, not taking into consideration the asset value of the stolen Intellectual Property to the company. In addition, most Cyber Risk Policies also will not provide coverage for upgrading security after an attack has occurred.
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Categories: Breach Of Security, Cyber Liability, Intellectual Property Infringement, Risk Management, Theft

Study Of Tech Patent Litigation Reveals Trends

A recent study of patent litigation in the high tech arena reveals what types of plaintiffs initiate litigation as well as what types of lawsuits are most frequent. This is important to predict the risks of patent infringement and the need for patent infringement insurance. It is important to note that patent infringement is not normally covered under a typical tech Professional Liability endorsement for intellectual property insurance. Therefore, a stand alone policy must be purchased for patent infringement insurance.

The study was limited to the high tech patents including those in the field of hardware, software, and financial inventions. The hardware category includes digital chip and memory processing, design, and architecture as well as semiconductor tech. Software includes cryptography, graphics, database design, software development, and user interface. Financial patents include those in the area of business modeling, projections, processes, management, and cost control.
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Categories: Intellectual Property Infringement