CCPA: Anxiety, Policy Limits Rising Ahead of California’s Sweeping Data Privacy Law

Wallan, who handles class actions, insurance recovery and business-related litigation, told the Journal that his clients are keeping him busy as they fret about the implementation of the nation’s most far-reaching data privacy law. Currently, he is helping clients review language in their cyber insurance policies to protect themselves before California Consumer Privacy Act kicks in.

“I have clients, we’re in negotiations now,” Wallan said. “We don’t have final wording yet, we’re not done.”

Wallan is looking at just about everything that can be examined in a cyber policy – with emphasis on matters like coverages, and whether to get more coverage, as well as waiting periods. And he believes we won’t have long to wait until the first lawsuits related to the new law begin to be filed.

“You’re going to see some class-action litigation, my prediction is, pretty early,” Wallan said.

Wallan said clients who are not yet in compliance with the CCPA should be concerned.

“(The law) has a lookback period where data goes back for a year,” he said. “Things that people are doing today…could fall within the scope of information that they’re going to have to ID under the provisions of the CCPA.”

Wallan added that many of his clients have set up special task forces to consider a host of CCPA-related issues – from compliance to legal matters – and what they can proactively do about them. The task forces are typically reaching out and working with departments all over the companies, making them a key part of many operations.

“That’s what’s really recommended here as a best practice,” Wallan said. “You better have one, two or more people who are experts on CCPA to make sure you are in compliance.”