As a result of the ongoing COVID-19 (commonly referred to as the Coronavirus) pandemic, there has been increased interest and demand to secure cyber liability insurance coverage. With the increase of volume of businesses that have switched to some form of a work from home structure, there has also been an increased volume of phishing, ransomware or other social engineering scams, as well as concerns over data related to COVID-19. Further, businesses have realized that cyber-related losses are most likely excluded under traditional general liability and property policies, and have focused in on analyzing potential exposures and cyber risk management.
On the positive side, the cyber insurance market is competitive with carriers working to offer coverages to meet businesses’ needs. Unlike other coverages, cyber liability insurance carriers offer guidance on preventing cyber incidents, such as employing technical security practices and internal back-up and recovery policies. This knowledge is based on experience gained from insurers’ responding to voluminous cyber claims. And these preventative measures work in conjunction with policy coverages in the event of a cyber…
