Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

11/6/2015
09:50 AM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

What The Boardroom Thinks About Data Breach Liability

Most public companies subscribe to cybersecurity insurance of some sort, and 90% say third-party software vendors should be held liable for vulnerabilities in their code.

Most US publicly traded companies now employ cybersecurity insurance to protect them from liability fallout, and 90% believe regulators should hold companies liable for breaches if they didn't properly secure their data.

The heat is also on third-party software vendors: 90% of the companies say those suppliers should be held liable for vulnerabilities found in their software, and 65% have either already or are planning to include liability clauses in their contracts with their software suppliers.

Meanwhile, 91% of companies that have cybersecurity insurance have protection for business interruption and data restoration; 54% for expense reimbursement for fees such as PCI fines, breach notification, and extortion. Some 35% say they want coverage for software coding and human error causes for data loss, according to a survey of some 276 board directors or senior executives by New York Stock Exchange (NYSE) Governance Services and Veracode.

Some 52% say they are buying employee/insider threat liability coverage. Coding and human error are rising on their radar screens: "I was surprised that 35% already are [seeking] insurance for coding and human errors. That number will increase, when there's standardization around what that means," says Chris Wysopal, co-founder and CTO of Veracode. "The insurance industry will drive the standards."

Wysopal says cyber insurance is becoming the norm for recovering costs of rebuilding and cleaning up after a breach. "The really important thing about cybersecurity insurance is it's really going to [define] best practices. You have regulators like the FTC … and SEC … talking about what they think is best," he says, and cyber insurance policies will likely "piggyback" off of those recommendations and influence what gets covered.

Deborah Scally, who heads up NYSE research, says cyber insurance is more pervasive than you'd think. "There's always insurance in place. You may not even know if you're covered [for cybersecurity] under your larger policies," she says. "We're going to be interested in looking at where this goes. We're kind of at the beginning states of that right now."

Some 90% of execs believe the Federal Trade Commission and other regulatory bodies should indeed hold businesses liable if they don't practice due diligence in data protection. And more than half anticipate that their shareholders will expect more transparency about cybersecurity.

"Boards are concerned about brand damage," Wysopal says. 

Kelly Jackson Higgins is the Executive Editor of Dark Reading. She is an award-winning veteran technology and business journalist with more than two decades of experience in reporting and editing for various publications, including Network Computing, Secure Enterprise ... View Full Bio
 

Recommended Reading:

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
mumbles76
50%
50%
mumbles76,
User Rank: Apprentice
11/6/2015 | 4:02:14 PM
FTC? SEC?
I think Insurance underwriters will require standard security measures to be put in place. But this artcle mentions the FTC and SEC as moderators? Did i read that correctly? Hardly the governing bodies that should be entrusted with our corporate security, if so.
News
Former CISA Director Chris Krebs Discusses Risk Management & Threat Intel
Kelly Sheridan, Staff Editor, Dark Reading,  2/23/2021
Edge-DRsplash-10-edge-articles
Security + Fraud Protection: Your One-Two Punch Against Cyberattacks
Joshua Goldfarb, Director of Product Management at F5,  2/23/2021
News
Cybercrime Groups More Prolific, Focus on Healthcare in 2020
Robert Lemos, Contributing Writer,  2/22/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win an Amazon Gift Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
Building the SOC of the Future
Building the SOC of the Future
Digital transformation, cloud-focused attacks, and a worldwide pandemic. The past year has changed the way business works and the way security teams operate. There is no going back.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2021-27132
PUBLISHED: 2021-02-27
SerComm AG Combo VD625 AGSOT_2.1.0 devices allow CRLF injection (for HTTP header injection) in the download function via the Content-Disposition header.
CVE-2021-25284
PUBLISHED: 2021-02-27
An issue was discovered in through SaltStack Salt before 3002.5. salt.modules.cmdmod can log credentials to the info or error log level.
CVE-2021-3144
PUBLISHED: 2021-02-27
In SaltStack Salt before 3002.5, eauth tokens can be used once after expiration. (They might be used to run command against the salt master or minions.)
CVE-2021-3148
PUBLISHED: 2021-02-27
An issue was discovered in SaltStack Salt before 3002.5. Sending crafted web requests to the Salt API can result in salt.utils.thin.gen_thin() command injection because of different handling of single versus double quotes. This is related to salt/utils/thin.py.
CVE-2021-3151
PUBLISHED: 2021-02-27
i-doit before 1.16.0 is affected by Stored Cross-Site Scripting (XSS) issues that could allow remote authenticated attackers to inject arbitrary web script or HTML via C__MONITORING__CONFIG__TITLE, SM2__C__MONITORING__CONFIG__TITLE, C__MONITORING__CONFIG__PATH, SM2__C__MONITORING__CONFIG__PATH, C__M...