Less Cyber Coverage, More Compliance Risk for Companies


  • Published On: May 12, 2023

Last year, policyholders received several favorable decisions recognizing coverage for cyber losses under various types of policies, including crime and all-risk property policies.

Before companies seeking to ensure adequate coverage for cyber risks had the opportunity to realize benefits from these decisions, insurance companies introduced new policy exclusions seeking to further limit their exposures.

The new policy exclusions, coupled with new regulatory requirements, potentially create a new set of liability risks for cyber defense and compliance to which companies must devote resources.

New Cases

One of the most significant decisions on cyber risk coverage last year was issued on Jan. 13 by the Superior Court of New Jersey, Law Division, Union County, in Merck & Co. v. ACE American Insurance Co.[1]

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