Neiman Marcus Case a Reminder To Check Your Cyber CoverageJuly 31, 2015 – In The News
Scott L. Vernick was quoted in the CSO Online article, “Neiman Marcus Case a Reminder To Check Your Cyber Coverage.” Full text can be found in the July 31, 2015, issue, but a synopsis is below.
A federal appeals court ruled Monday that customers could file class action lawsuits against Neiman Marcus in the aftermath of last year's breach of its systems. The judges ruled that the breach was a great risk of harm to the customers.
Scott L. Vernick, a noted privacy attorney, cautioned that the Neiman Marcus case is an isolated decision. Other courts may or may not follow suit, he said.
There also have been other cases that went in favor of the victims of a data breach, he said, though in most instances they were dismissed because the plaintiffs had not suffered actual damages.
This should be an opportunity for companies to double-check their policies and make sure they're covered for litigation, sending out notices to victims and paying for credit protection.
Since the level of potential risk is different for different industries, companies should check that their cyberinsurance is tailored to the needs of their particular business, he said.
"And depending on what kind of business you have, you certainly want to make sure that it will cover any response to any investigations by law enforcement and regulatory agencies and any fines that might be imposed," he added. "That's something a lot of companies overlook."