A Pasich Attorney Explains How New SEC Cyber Reporting Rule Could Affect Insurance Coverage in Business Insurance Interview
A Pasich attorney discussed a new cybersecurity rule issued by U.S. Securities and Exchange Commission in July 2023 that requires businesses to report material cyber breaches. As he explained to Business Insurance, this is an aggressive regulatory response aimed at forcing companies to come clean about these breaches as soon as possible.
When asked how the rule could affect insurance coverage, they said: “We can expect that clients are going to be looking more and more to their cyber and their management liability — in particular D&O — insurance to try to deal with any consequences of their liability.”
“Companies should look at their internal procedures with regard to reporting cyberattacks, make sure they are in compliance and have robust insurance coverage as a failsafe if violations are alleged,” they added.
Read the Business Insurance article here.