As discussed in my earlier posts, Expanding Cyber Insurance Coverages and Cyber Insurance: It's Not Just for Data Breaches, cyber insurance policies are continually being updated to provide new and innovative coverages in light of today's new and increasing cyber risks. I highlight some of the latest cyber coverage offerings here.
At least one insurer is now helping its insureds reduce the risk of future cyber events. This carrier offers coverage for the following:
Coverage is now available under at least one policy for losses resulting from cryptojacking and botnetting, two of today’s most rampant cyber exposures. Cryptojacking means the unauthorized use of the insured’s computer system to mine cryptocurrency. Botnetting means the unauthorized use of the insured’s computer system to launch a denial of service or hacking attack against a third party.
As discussed here, many cyber insurers now offer comprehensive “social engineering” coverage for situations where the insured is fraudulently induced to transfer money to a cyber criminal. In addition to that coverage, at least two insurers now offer coverage for the insured’s lost income or profits because of fraudulent electronic communications designed to impersonate the insured.
At least two carriers have expanded their contingent business interruption coverage beyond situations where the insured’s computer system is degraded or interrupted due to a cyber event affecting certain service providers. Under the new forms, coverage also can be triggered by non-cyber events, such as an accidental system failure, software patching, or software updates, affecting the insured’s service providers. One carrier also has broadened the range of relevant service providers to certain non-technology entities.
One insurer has expanded on market-standard reputational harm coverage, which typically provides reimbursement for loss of income or productivity resulting from damaging cyber news stories about the insured. The new coverage also applies to fake news stories.
These coverages may not be available from all insurers and they may be subject to sublimits and other important policy provisions. Companies are urged to keep their eyes on the constantly evolving cyber insurance market and take advantage where appropriate of emerging coverages that can provide important protection against new cyber risks.
Judy Selby brings 25 years of insurance coverage litigation experience to her insurance consulting work. She has a particular expertise in cyber insurance and coverage under various policy forms for today's emerging risks. She provides coverage evaluation, policy negotiation, gap analysis and policy drafting services to companies across multiple industries, bringing greater clarity and certainty to their insurance programs. She also provides expert witness services in coverage disputes, insurance due diligence, and private equity advisory services.
Judy also is a co-founder of Clearview Privacy Consulting LLC, an advisory firm that assists companies with their privacy compliance, best practices, and training needs.
Judy has been an invited speaker at prominent industry conferences and is frequently quoted in prestigious publications, including the Wall Street Journal, Fortune, Forbes, and Reuters. She has authored three eBooks: A Closer Look at Cyber Insurance, Demystifying Cyber Insurance, and Big Data for Business Leaders.
In addition to her law degree, Judy has completed advanced courses at the Massachusetts Institute of Technology (MIT) and Harvard Business School in the areas of big data, crisis management/business continuity, cybersecurity, the Internet of Things (IoT), and finance. She also has taken courses in cloud computing and the Data Protection Officer (DPO) role under the GDPR.
Judy Selby is a former co-chair of the CLM Cyber Committee, member of the Law360 Insurance Editorial Board, and a 2015 finalist for the CLM Outside Professional of the Year award.
The Landy Agency is a national leader in providing non-medical, professional liability and cybercrime insurance for accountants, attorneys, and real estate professionals. John Torvi can be reached at 781‐292‐5417 or johnt@landy.com. Visit www.landy.com for more information.
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