Cyber Insurance: Are You Covered and Will Your Insurer Pay When a Breach Occurs?

Every week we hear about new data security breaches at major companies, on a larger and larger scale, ever increasing the likelihood of such a breach at your company and the associated legal claims and potential liability that can result.  There are many cyber insurance products on the market designed to cover such losses, some affording better coverage than others, and insurance companies have sold a lot of them in recent years to help corporate policyholders shift the risks of cyber liabilities and losses off their balance sheets.

Until recently, insurers have had to be seen paying claims to buttress the perceived value of these policies.  But with many markets saturated, insurance companies have begun to dispute coverage for claims corporate policyholders reasonably believed would be covered.  This kind of pushback can be hard for clients to understand.  If your company had the foresight to buy cyber insurance, have you managed your client's expectations about the likelihood of claims being paid in a hardening insurance market?  Will your company still have access to cyber insurance markets when the inevitable claim occurs?

Please join Dennis Nolan as he examines the state of the cyber insurance marketplace and provides guidance to counsel navigating potential coverage issues, legal concerns and risks in this rapidly evolving field.