Buying Cyber Insurance In An Imperfect Market

There has never been anything comparable to the risks from a cyber-attack. John Reed Stark, contributing editor of Cybersecurity Docket and David Fontaine, Chief Legal Officer of Altegrity, Inc., explain what makes these risks unique and what it means for companies that are buying cyber insurance. Many types of coverage may be implicated after a cyber-attack, depending on factors such as the nature of the compromised data and the type of damages at issue. The scenario is further complicated by the fact no standard forms yet exist. “We believe,” the authors write, “that a company should begin with a review of actual cyber-attacks experienced by others, analyzing and scrutinizing the typical cyber-incident response workflow and so-called ‘workstreams’ that typically follow most cyber incidents.”