This article examines the issue of cyber risk and exposures to loss, including recent legal and legislative developments. It reviews and discusses the options for cyber insurance coverage and the coverage limitations of such policies and endorsements. The article also explains the first and third party exposures to loss that cyber insurance covers as well as other benefits of cyber insurance. To highlight the impact of cyber breaches and the benefits of cyber insurance, this article examines recent cyber breaches, including the cyber breaches at Target and Home Depot. The purpose of this article is to provide guidance to legal practitioners and other professional advisors regarding potential cyber risk exposures.
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