Brokers around the globe are proselytizing about insurance for cyber risks. They say gaps in typical business coverages leave companies exposed to high costs and potentially extraordinary liability without coverage specifically tailored to cyber risks (including, but not necessarily limited to, data breach). And these brokers are right. The brokers, however, are sometimes wrong in encouraging their clients to opt into cyber coverage policies that are far less than ideal.
Recently, a client asked me to review various cyber coverage options presented to it by its broker. The broker had told the client that the cheapest option was, fortunately from the broker’s perspective, the best option. But as I reviewed the various cyber coverage forms, I was reminded that you often get what you pay for.
Continue Reading Holy Cr*p! I Have an Insurance Gap for My Cyber Attack?