Companies are looking to cyber insurance to help manage the fallout from a wave of COVID-19 related cyberattacks, highlighting the need for businesses to pay close attention to internal data security shortcomings and policy limits that could spark coverage fights, Law360 reports.
"Cyber was already a hot area where we were seeing a lot of claims before the pandemic hit," said Tamara Bruno, a Pillsbury partner in Houston who represents policyholders. "Now with the massive abrupt change of so many working from home, that's just thrown gas on the fire."
"This is a good time, especially if a company is making a longer-term change to working from home, to really look at cyber policies in detail from a legal standpoint to make sure that they match what the company is actually doing," Bruno said. "If they don't have cyber insurance, they should really talk to a broker about cyber insurance or at least think about a different way to shift that risk, because companies really can't afford to not be thinking about this issue right now."
Experts predict that cyber insurance offerings may start to look a little different in the coming years, particularly if more companies move to permanently shift remote work, Law360 reports.
"There are differences in underwriting a centralized network than a scattered network," Bruno concluded. "It will be interesting to see if there will be changes made to insurance policies, such as carriers asking for heightened or different security protocols, to lessen their risks when it comes to having more scattered networks and the security issues that go along with that."