The biggest difference between handling cyber claims and more traditional property/casualty claims is the speed with which the process unfolds, which demands an immediate, coordinated response by the policyholder, insurer and broker, observers say.
Claims handling for the more traditional property/casualty lines is a comparatively leisurely process, in which a claim is made, the policyholder awaits a decision on coverage, and matters progress from there to either a paid claim or litigation, they say.
In contrast, cyber claims are characterized by often frantic speed, with simultaneous events occurring on multiple fronts and conceivably the company’s existence at stake.
. . .
Initially, everyone “is trying to figure out what actually happened,” whether it is a breach, a ransomware incident “or some other variation,” said Daniel J. Healy, a partner with Anderson Kill P.C. in Washington. Determining the extent that data is compromised and what has been damaged “can be pretty complicated,” he said.
To read the full article, please click here.