There have been a series of recent high profile cyber insurance
claim denials. As a result, policyholders are asking
questions. What, if anything, did we purchase? Is our
cyber coverage any good? Were we duped by all of the
marketing hype offered to sell cyber insurance products? Why
are cyber insurers denying claims? Why are cyber insurance
claim denials so common?
Policyholders rightly expect cyber insurance to respond to cyber
crimes — But, insurers don't see it that way
There are a number of reasons for the large number of cyber
insurance claim denials. First, claims determinations under
cyber insurance are particularly susceptible to insurers arguing
that they did not intend to cover a type of claim, even when
their policy language often tells a different story. Second,
as with many new products, cyber security insurance policies have
not yet normalized around a single coverage grant and standardized
exclusions. Third, insurers are writing coverage
