Page 2 - Cybersecurity

S2 | MONDAY, JUNE 5, 2017 | Cybersecurity
| NYLJ.COM
BY MIKAELA WHITMAN
The term Artificial Intelligence, or AI, encompasses a wide and seemingly ever evolving range of technology-based products and services. It is employed by everyday products (i.e., Siri and Facebook), and AI cognitive learning platforms, like IBM’s
Watson, are shaping the future of global indus- tries such as healthcare, automotive and manufacturing. According to research firm IDC, the “widespread adoption of cognitive systems and artificial intelligence across a broad range of industries will drive world- wide revenues from nearly $8 billion in 2016 to more than $47 billion in 2020.”
The rise of AI-enabled devices and robots
will create a host of liability issues as they become progressively more autonomous, independent and interconnected. As these robots learn from their actions and take steps farther and farther removed from human pro- gramming, there is an increased risk of unpre- dictability and unforeseen consequences. For companies that employ them, these losses could include, but are not limited to, bodily
injury, property damage, and monetary loss. And, autonomous robotic actions could cause a variety of cyber security risks and losses. As a result, companies that employ any type of AI-enabled device or robot should consider the kinds of insurance that could provide cov- erage for those losses.
Traditionally, robots have been used pri- marily for assembly-line manufacturing type jobs. But as technology advances they will move into roles that require human interfac- ing and decision-making abilities. Whether on the manufacturing line or delivering your Amazon purchase, the use of AI and robots will inevitably lead to claims of bodily inju- ry and property damage. If there is a claim against your company by a third-party for bodily injury or property damage a company’s first stop should be the standard Commercial General Liability (CGL) policy. Alternatively, if your robot injures your employee, your company should look to its Workers Com- pensation Insurance for potential coverage.
A CGL policy provides broad defense and indemnity coverage for claims against an insured alleging, among other things, “bodily injury,” and “property damage.” A CGL policy’s insuring agreement typically obligates the insurer to “pay those sums that the insured becomes legally obligated to pay as damages because of “bodily injury” or “property dam- age” (the duty to indemnify). It also typically obligates the insurer to provide and/or pay the litigation costs related to that claim, including the attorneys’ fees incurred in defending a law- suit (the duty to defend). The “bodily injury” or “property dam-age” must be caused by an “occurrence,” which is usually defined as, “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” » Page S13
MIKAELA WHITMAN is a partner at Liner in New York, where she practices in the firm’s insurance recovery group.
Westworld, Skynet ... There Might Be Insurance for That!
Inside
S4 What to Expect From The SEC’s New Cyber-Savvy Chair BY DANIELLE C. GRAY
AND PATRICK D. MCKEGNEY
S6 Prosecuting Cyber Crime:
An Overlooked Part Of Bharara’s Legacy BY DANIEL L. STEIN
S7 Blockchain: The Key to True Cybersecurity? BY JEFFREY D. NEUBURGER
AND JONATHAN P. MOLLOD
S8 Deal Breakers: The Importance Of Privacy
And Security Due Diligence
In Transactions BY JENNIFER DANIELS
S9 New DFS Cybersecurity
Regulations Are Here: Will Your Insurance Protect You?
BY ANDREW M. REIDY
AND JOSEPH M. SAKA
S10 Is Your Discovery Process
Setting You Up for A Data Breach?
BY ERIC PESALE
AND CASEY C. SULLIVAN
Rebecca Baker, Deputy Editor-In-Chief • Angela Turturro, Sections Editor • Rafal Pytel, Design © 2017 ALM MEDIA PROPERTIES, LLC. • THE NEW YORK LAW JOURNAL ® IS A REGISTERED TRADEMARK OF ALM MEDIA PROPERTIES, LLC.
COVER ILLUSTRATION: SHUTTERSTOCK
SHUTTERSTOCK