PUBLISHED ON: December 1, 2021
With a cyber specialty insurance product market that is changing rapidly, becoming tighter, more expensive and more selective, key revelations from cases decided in 2021 are of particular relevance to policyholders looking to secure their insurance protection in the wake of a cyber incident.
Policyholders currently face what may be the toughest cyber insurance marketplace ever. Premium increases have been astronomical for many, and getting the same quality of protection is becoming more elusive—even for those organizations that have strong safeguards in place.
Despite this, it is not all doom and gloom. Decisions involving cyber claims under non-cyber specific insurance products have been largely favorable to policyholders throughout the year, reminding all that insurance coverage may be found across product lines in the wake of a multi-faceted cyber loss. Below are a few key takeaways from seminal coverage rulings during the year. Lesson One is that the whole “silent cyber” narrative has to be taken with a grain of salt. A slew of commercial insurance policies (whether D&O, E&O, general liability/CGL, crime insurance, property insurance, etc.) may provide significant coverage for policyholder losses or claims, at least in substantial part.
For example, in the G&G Oil Co. of Indiana, Inc. v. Continental Western Insurance Co. case decided earlier this year by the Indiana Supreme Court, the fact that the policyholder had refrained from purchasing a specific cyber coverage endorsement did not negate coverage under commercial crime insurance for a cyber loss resulting from a ransomware attack. The Indiana Supreme Court rejected the argument that a crime coverage insuring agreement could not cover the policyholder where it had failed to purchase specialized cyber coverage under a business package policy.
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