Limits of Cyber Insurance Being Tested in Litigation

Attorneys Thomas Rohback and Patricia Carreiro take a look at the state of insurance coverage for cyber attacks and data breaches. As hackers have become more sophisticated and litigation seeking redress more frequent, companies have turned to a variety of policy types, including Commercial Crime, Director and Officer (D&O), Errors and Omissions (E&O), Commercial General Liability (CGL), and increasingly to specialized cyber insurance policies. The results have been mixed. This article looks at some of the important recent precedents, but they warn that “the scope of cyber insurance is a work-in-progress,” complicated by the fact that policies had to be written arguably without sufficient underwriting data.