Key Considerations for Cyberrisk Coverage

Originally published by Risk Management, October 2017

Today's cyberthreats can trigger multi-faceted losses. A serious cyber incident could cause bodily injury, property damage, business interruption, shareholder litigation, customer privacy litigation, regulatory action, terminations or resignations among senior management, and reputation dam­age. As such, a host of insurance policies may come into play, including directors and officers, errors and omissions, cyber, property and crime.

If a cyber incident occurs, one of the first steps to take is to provide prompt notice to insurers for all potentially implicated policies. Even if you or your broker believe that coverage may not be available based upon recent cases, err on the side of providing notice under most circumstances.