Cyber Risk Insurance: Why Simply Having It May Not Be Enough

Governo Law Firm partner Nancy Kelly, associate Colin N. Holmes and law clerk Matthew Rice recently published an article in the April-June issue of Risk & Compliance Magazine, entitled "Cyber Risk Insurance: Why Simply Having it May Not be Enough." The article discusses the intricacies of cyber risk insurance products and highlights the lack of conformity among cyber risk policies and the absence of judicial interpretation of these contracts. The authors recommend that companies take an active role in understanding and choosing policies for their individual businesses, including knowing exactly what type of losses are covered, whether exclusions limit the scope of coverage, and the effect of sub-limits. The risks and costs of managing a privacy crisis or cyber-crime can significantly harm the reputation and the bottom line of an unprepared company. As more business is done online and "in the cloud," organizations need to consider tailoring a cyber risk insurance policy to their individual needs. You may view the article in PDF format here.

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