Cyber Insurance: The Policy Gaps All Businesses Need to Know
April 21st, 2016
With data breaches and other digital attacks against major retailers and other organizations becoming chillingly regular, the purchase of Cyber Security Insurance policies, which support traditional crime and general liability coverage, are expected to triple to $7.5 billion by 2020.
Businesses purchase a policy and check it off their To-Do List; but as Richard Caplan, a litigation associate in national law firm LeClairRyan, warns in his blog, “even if you purchase a cyber-specific insurance policy, disputes over coverage may still arise.”
Caplan says the world of cyber insurance poses many thorny issues, first being “that whether an insured is actually covered is not always so clear;” and second, “that courts may be requiring a heightened standard of care for insurers to diligently investigate a cyber-related claim.”
Caplan’s advice when considering cyber insurance for your company:
- Do you need it?
- What risks should be covered? (First Party Remediation, Third Party Claims, or both?)
- How much is enough?
To read the full blog post, visit http://informationcounts.com/understanding-cyber-insurance-coverage/