Corporate Insurance Blog

In her post, Insuring the Cloud, author Alison Diana writes about insurance coverage for risks relating to the cloud.  She discusses insurance policies and insurance products available in the marketplace to cover the cloud and risks relating to the cloud.

The post opens:

As cloud becomes more pervasive, many organizations are seeking ways to insure themselves from unexpected downturn. Traditional and new insurers are starting to offer insurance programs designed to protect companies’ information, networks, and operations from cloud failure, a market likely to grow and help spur further adoption of cloud among enterprises.

Insurance companies have struggled with ways to address the business continuity and protection needs of cloud customers.

The article then cites an insurance broker and insurance industry CEO, who work in the area of insurance coverage for cybersecurity, data, privacy, and other cyberrisks, discussing what new offerings are available to corporate insureds and corporate policyholders looking to buy cyberinsurance for the cloud.  She also cites an article from Judy Greenwald at Business Insurance that quoted me discussing cyberinsurance and the cloud.  (You may recall seeing this earlier blog post about the article.)  Citing me, Ms. Diana writes, in part:

Scott Godes [who was] of counsel at law firm Dickstein Shapiro L.L.P. told BusinessInsurance.com (registration required) that he’s seen few, if any, policies that specifically named cloud computing. Typically, he said, liability policies and first-party policies are written to include cloud computing. “Close attention should be paid to when the term ‘computer system’ or ‘computer network’ is defined, if those are the operative terms of what is covered,” he told BusinessInsurance.com.

I stand behind that discussion, and note that I recently have seen a package cyberinsurance policy that did specifically reference insurance coverage for the cloud.  The times, they are a changin’?  As I have written before, the marketplace for cyberinsurance policies may be considered the “Wild West,” so insurance policies, including cyberinsurance policies, should be reviewed carefully.

Want to read the other opinions and thoughts offered on the subject?  Then click on over to Insuring the Cloud to read the entire post.

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