Continuous 4-Day Cyberattack on the New Zealand Exchange Highlights Importance of Insurance Coverage for Cyberattacks and of Having a Sound Strategy to Maximize Recovery

The DDoS attack, which is said to have originated offshore, is allegedly part of a global extortion scheme that has also targeted companies like PayPal and Venmo.With this type of cyberattack becoming only more common and sophisticated, it is vital for policyholders to focus on the host of available insurance coverage options to protect against and maximize their insurance recovery following losses from a cyberattack.

Cyberattacks can lead to both first-party losses, like the costs following equipment damage, the restoration of data, and business-interruption; as well as third-party losses, like the costs stemming from customers claims due to data and privacy breaches . Luckily, different types of insurance policies can often provide coverage for both first and thirdparty losses following a cyberattack.

Very often, coverage for the various losses following a cyberattack can be found in other, more traditional forms of coverage, including :

As the cyberattack on the New Zealand stock exchange shows, cybercrime likely will only continue to mount in degree and sophistication. How insurance coverage will respond to the ever-changing threat posed by cyber risks largely depends on how a policyholders insurance program is structured, and the particular provisions and exclusions in each kind of policy.Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.

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