It seems that every week brings news that another company has been impacted by a major data breach – and of the resulting financial, legal and public relations costs. As companies seek out ways to prevent these events and recoup losses associated with a data breach, cyber insurance is increasingly discussed as an effective method of recovery. In a recent article published in the Daily Journal, Hunton & Williams’ Insurance Coverage Counseling and Litigation attorney William T. Um offers a primer on cyber insurance, outlining key considerations for businesses as they explore this emerging area of coverage. The article discusses how:
- Companies should consult insurance coverage counsel and experienced brokers to help determine risk;
- A comprehensive evaluation of cyber risk allows companies and brokers to match the scope of coverage with the appropriate products;
- One-size does not fit all when it comes to cyber insurance products; and
- Many cyber insurance policies require the use of the insurer’s “panel” of experts. Companies should be careful about giving up too much control over the selection of attorneys, forensics experts and cybersecurity professionals on the panel.