Adding insult to injury, businesses victimized by a cyber incident — data breaches, cyber-attacks, ransomware, etc. — due to no fault of their own, may also have little or no recourse to recoup their losses.

More often, after a cyber incident, businesses are left not only with their first-party losses but may also face third-party claims from customers and contractual counterparties. As such, businesses should carefully analyze whether they have potential product liability claims that may be asserted where software (and hardware affected malware) defects played a role in the cyberattack. Such claims should be pleaded carefully to maximize the company's ability to access a putative defendant's product liability insurance coverage.