The Potential Role of Cyber-liability Insurance In Data Breach Litigation
Open Access
Author:
Mccoy, Eric S
Area of Honors:
Security and Risk Analysis
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
John Watson Bagby, Thesis Supervisor Marc Aaron Friedenberg, Thesis Honors Advisor
Keywords:
cyber law ISAC insurance liability risk information security information technology data breach
Abstract:
This paper aims to illuminate cyber-liability insurance’s potential to alleviate the information asymmetry of the information security market, and to decrease defendants’ liability in data breach litigation. To accomplish this end the paper elaborates the economic research under girding the nature of the information asymmetry problem. The paper also discusses the precedential background of data breach litigation and the current cyber-liability insurance market to explore how innovations in cyber-liability insurance stand to take advantage of the existing legal landscape. Finally, the issues of relying on cyber-liability insurance to set standards are presented and the paper concludes with a balanced assessment of cyber-liability insurance’s potential.
