Software Liability and Insurance
Insurers can bring unique evidence and legal strategies to software liability cases if the regime creates a path for subrogation.
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In this paper for Lawfare’s Security by Design Paper Series, Daniel Woods argues that the actions of insurers can meaningfully contribute to a strong U.S. software liability regime. He sets forth a proposal that would empower insurers to recover against vendors for their production of insecure software. This system, he says, would provide for victims’ compensation through insurance while enabling a software liability regime to discourage insecure software development.You can read the paper here or below.
Daniel Woods is a Lecturer in Cyber Security at the University of Edinburgh, and a Security Researcher at Coalition. He received his PhD titled “The Economics of Cyber Risk Transfer” in 2019 from the University of Oxford.
