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Date: September 22, 2022
Spokane Journal of Business

Privacy, Cybersecurity & Data Protection attorney Tom Ahearne discussed personal liability risks for directors or officers in cyberattacks and insurance recovery strategies in a recent Spokane Journal of Business article. Tom notes that even with cyber insurance and preventative measures in place, directors or officers could still be challenged to prove they’ve done everything they could to prevent a cyberattack, stating that “the shareholders of a private corporation can sue the board of directors for not being good captains of the ship because the board and the officers have the highest honor and obligations of responsibilities that are owed.”

He also describes how cyber insurance may only help a company recover damages in some specific scenarios, adding that if any information reveals that losses were the result of someone failing to perform their duties, then the insurance company likely will cover only a fraction of the loss, and officials may be held responsible for remaining damages.

Read the full article on the Spokane Journal of Business website.

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