New Options In The Volatile Cyber Insurance Market

When buying cyber insurance, shoppers  are warned to look carefully at the fine print and watch for exclusions, as the industry struggles with a rapidly shifting threat landscape and relatively little in the way of claims history. Meanwhile, there are some new offerings. The American Bar Association’s product, underwritten by Chubb Limited, “includes cyber coverage for a firm’s own expenses, such as network extortion, income loss and forensics, associated with a cyber-incident as well as for liability protection and defense costs,” and can be “tailored to meet a law firm’s unique needs.” CNA recently announced its new product, a “Lawyers’ Data Breach and Network Security Endorsement,” available as part of its Lawyers’ Professional Liability policy. This policy covers “client network damage claims up to the policy limit, as well as coverage up to $20,000 for certain costs associated with regulatory investigations arising from actual or alleged violations of privacy breach notice laws that occurred in the rendering of legal services.” There are specific coverages for firms with five or fewer attorneys. From Barnes & Thornburg, comes a general discussion of the importance of coverage that specifically references cloud-related liabilities and points out three important things to watch for when contracting for this kind of coverage.