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Knowing What to Ask For in Cyber Liability Insurance

Changing verbiage and changing cyber liability coverage standards are among today’s challenges, members of the newly formed Cyber Liability Practice Group agreed at their first teleconference.

“Different carriers have different names for the same coverage. We’re struggling with how to explain it. Instead of using the carrier’s verbiage when we talk to a client, we generalize it and add a disclaimer that there may be different terminology. We’ve had more success in presenting it this way,” one member said.

Another Practice Group member took a different view. “We prefer to go agreement by agreement and explain what each section covers.”

Most practice group members work with two to five carriers, with Travelers, Hanover and The Hartford being among the most popular.

If you are considering a new carrier, one member stressed, ask about its training and track record in breach response. “It’s hard to demonstrate that on a policy form, but the value of good breach response is immense. We should highlight the carrier’s record when we are selling cyber liability coverage.”

Most carriers are willing to make changes or additions to forms upon request. “The problem is knowing what to ask for,” one person said.

Court Cases

  • A recent high-profile case involved New York-Presbyterian Hospital, which allowed unauthorized filming of two patients for a television series. The hospital previously was fined $3.3 million after health information was placed on a shared date network accessible on the Internet.
  • The decision in Carpenter v. United States, in which the Supreme Court heard oral arguments last month, is expected to have a major impact on privacy laws. The specific issue here is whether a law enforcement agency can obtain cell phone records showing a caller’s location without a warrant.

The Cyber Liability Practice Group meets on the third Tuesday of the month at 8:00 AM Pacific time (11:00 AM Eastern).

 

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