Errors and omissions insurance is lagging behind other lines in excluding "silent" cyber coverage, although the possibility of increasingly expensive third-party cyber claims may force that to change, a risk management conference panelist said.
Anderson Kill PC partner Pamela Hans, another speaker on the panel, noted that while courts have ruled in several cases that cyber coverage can exist in commercial general liability, property, crime and other noncyber policies, insurers have generally taken steps to exclude silent cyber. Policyholders have to balance being hopeful of coverage under policies other than a standalone cyber policy with the reality that silent cyber is being addressed by insurers, Hans said.
"I say this so that you're not given false hope by someone who says, 'There's going to be silent cyber. Let's pursue this,"' Hans said, while adding later, "Don't totally give up and not bother to take a look; make an informed decision and give notice just in case."
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