As new and comprehensive privacy and cyber regulations continue to proliferate across the globe, I’m frequently asked if cyber insurance covers claims for related regulatory investigations, fines, and penalties. Although the answer to that question requires an in-depth review of the specific insurance policy at issue, the good news is that some cyber insurers are now providing more expansive regulatory coverage than ever before. Insureds, however, must know where to look. Here are some key issues to keep in mind when reviewing a policy for broad regulatory coverage.
Managing today’s privacy and data protection issues is no easy feat. Hyper-connectivity, mobility, big data and analytics, and remote assess to enterprise data have revolutionized the way modern organizations function. But those same phenomena also have exponentially broadened the privacy and data protection exposures companies now must manage.
It’s been almost a year since I posted Cyber Insurance: It’s Not Just for Data Breaches, in which I noted that just as cyber and privacy threats have continued to evolve, cyber insurance policies also have evolved to provide greater protection against some of today’s most vexing and relentless cyber risks. In this post, I highlight some additional and innovative coverages that can provide real value to insureds following a cyber or privacy incident. As noted in last year’s article, not all these coverages are offered by all cyber insurers, and sublimits, retentions, and the precise policy terms and conditions should be carefully reviewed. Further, its important to note that some carriers offer similar coverages to those described below, but they may use different terminology to describe the coverage provided.