Insurance coverage for cyber losses[dagger]

Society's dependence on computers requires our constant vigilance against cyberattacks and the spread of malware. When a loss occurs, industry and commerce will look to an outside "responsible party" in the sense of contract or tort liability, but not all losses will be resolved in that fashion. a culprit cannot be found, or, if found, the culprit is "judgment proof," victims will seek first-party coverage from their insurers. They will also seek protection under their third-party liability policies. First party policies cover damages incurred by policyholders to their own property. Third-party policies are designed to cover losses to third parties for which the insured may be liable. In order to obtain coverage for damage resulting from cyber losses, an insured must establish the elements of triggers and occurrence. These concepts are discussed in detail. In addition to the foregoing trigger and occurrence requirements, there are policy exclusions that may bar coverage.