Cyber Liability


With the global economy’s ever-increasing reliance upon technology and the internet, and the proliferation of online social media, businesses face “cyber liability” exposure. Computer hacking and cyber-attacks can cause substantial disruption to business operations. In addition, online security breaches, whether due to outside forces, or internal errors and omissions, can lead to exposure for businesses to third parties, such as customers or clients.

Businesses can face claims for damages resulting from breaches to their network security systems, including the disclosure of personal or private data. In addition, businesses are increasingly facing exposure for claims resulting from content posted on their websites, or social media sites, including but not limited to claims for defamation, breach of contract, and copyright and/or trademark infringement.

Businesses also face ever changing statutory and regulatory requirements relating to their computer networks that can expose them to liability for noncompliance. Nearly every state and the District of Columbia have statutes that place obligations on businesses to report instances in which their network systems have been breached and private data has been lost or revealed. There are also federal and foreign data breach laws. And increasingly, laws are placing burdens on businesses to take steps to safeguard data and computer systems.

Carr Maloney understands the importance of these issues to businesses, organizations, and associations of all sizes. The firm has advised businesses, large and small, in regard to legal obligations for data security and reporting about lost data and security breaches. Our attorneys have experience in several types of cyber liability claims, defending companies in lawsuits involving claims of negligence, invasion of privacy, and breach of contract arising out of the use and dissemination of computer-based information.

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