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Client Alert: Cyber Insurance

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A Cyber Response Strategy

Action Items

Experience a cyber attack? Consider the following:

Cybersecurity Incidents Are Increasingly Common

Banks and financial institutions are prime targets for criminals. Most general liability and D&O insurance policies exclude coverage for cyber and electronic data losses or require specialized endorsements to provide such coverage. As a result, standalone cyber insurance policies are important aspects of a company’s overall cyber response strategy. Companies should work closely with their insurance brokers to evaluate and purchase the right policy or policies.

Actions To Take Should a Cyber Incident Occur

It is important to follow the requirements of the policy regarding incident response, especially events necessitating early and immediate notice to the insurer(s) and/or a cyber-security firm with which the insurer has contracted and/or government authorities, as applicable. Certain incident response actions may also require prior approval of the insurer.

Based on Barack Ferrazzano’s experience representing clients that have experienced cyber attacks, a company that suffers a cyber incident should consider the following:

After The Immediate Crisis

Once the immediate crisis is addressed, the hard work with the insurance company may just be beginning. You will have to substantiate out-of-pocket costs and the financial impact of the attack. This will require significant internal resources and, potentially, outside consultants. Again, the insurer will have specific requirements and deadlines regarding this process.

We Can Help You

Please call us if you would like to discuss any of these issues or if we can otherwise be of assistance.

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