“A Lawyer’s Advice for Evaluating Your Cyber Coverage”

Posted on February 10, 2012 by Scott Godes 2 comments

I recently wrote an article titled, “A Lawyer’s Advice for Evaluating Your Cyber Coverage: Policies vary significantly from carrier to carrier—and even within the various forms of one company.” It has been published on the Property Casualty 360° website, republished from the February 6, 2012 issue of National Underwriter.

In the article, I discuss insurance coverage for data breaches, cyber risks, cyberattacks, and cyber events, including what factors to consider when buying cyberinsurance policies for cyber risks. I also discuss how different cyber risks may be characterized, whether as within first party, or third party insurance coverages, and how to keep those risk factors in mind when brokering, broking, or buying a cyberinsurance policy.

Here is a brief excerpt from the article:

Policyholders and insureds exposed to cyber risks would be well served to analyze carefully their insurance policies to determine exactly which coverages apply to them—and to see if any critical coverages are missing.

Cyber Liability insurance should provide coverage for the vast majority of key cyber risks, and there may also be overlapping coverage under other policies for such exposures.

The first place that a company should look to determine whether it has, or may have, coverage for cyber risks is any specific Cyber Liability policies that the entity holds. A very close look at these policies is warranted, as the coverage under such policies often varies significantly from carrier to carrier—and even within the various forms that one particular insurance company offers.

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