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In addition to being unaware of the growing menace, many companies do not have the appropriate insurance coverages in place to deal with a cyber breach. It is estimated that only less than half have any coverage at all (Insurance Journal Nov. 6, 2015). In fact, insurance experts have characterized the cyberinsurance marketplace as the “Wild Wild West”. Policies differ, policies from the same carrier differ, and the policies differ year to year. Trusted counsel and insurance experts should scrutinize if cyber attacks are covered and what services are paid for by the policy. Just because it happens online and it’s connected with a computer does not mean that it’s covered by what an insurer would consider a cyber –policy. It depends on the terms of the policy and not the mere buzz words of cyber or privacy liability insurance. There also may be exclusions dealing with the failure by the insured to implement requisite risk controls and procedures on a continual basis.
Read More: Cyber Security Part 3
This article is the third installment of a 3-part series on cyber security:
