Session 6: Malware, Cyberattacks, and Software Breakdowns: Collecting Damages When Events Happen, an
Speakers:
Patrick Anderson, Anderson Economic Group
Andrea Gumushian, ArentFox Schiff
Brad Weiss, Charapp & Weiss, LLP
Automobile dealers are particularly vulnerable to malware, cyberattacks, and software breakdowns. That vulnerability is heightened with the reliance on centrally-managed software, including DMS as well as registration and customer targeting applications. The single ransomware attack on CDK cost automobile dealers over $1.02 billion in June and July of this year, according to an estimate by Anderson Economic Group. A subsequent error in Crowdstrike software cost Delta airlines alone over $500 million dollars in just one week. In this session, we review steps dealers and their counsel can take to reduce their vulnerability to such losses, and collect damages from insurance and software vendors when those damages occur. We will review 6 categories of business losses that can befall auto dealers in such events, and how economists can
estimate losses for those categories. We also provide practical guidance on dealing with liability issues and insurance policies, contracts with vendors, and state data breach and privacy laws.