Cyber liability insurance market: Equal parts promise and peril

01/01/2018 16:36

When it comes to cyber threats and how they continue to evolve, Adam Cottini, managing director of Gallagher’s Cyber Liability practice, offers a chilling assessment: “You have the known and the massive unknown.

 

The potential damages are at once serious and extensive: Physical loss. Financial loss, in myriad forms. Reputational loss. All of these perils are woven into a threat from which no insured is truly safe, regardless of their size or the industry in which they operate. As the digital frontier expands, every single client, to a greater or lesser degree, is exposed. 

 

Acknowledging the intersection of cyber liability, business interruption and property policies is particularly important when determining how clients may — or may not — be covered for a cyber loss, and just which policy is triggered depending upon how the incident occurred. As Laura Rieben, director of privacy for Independence Blue Cross’ internal audit division, stated during a panel at ALM’s cyberSecure conference in New York City on Dec. 5, 2017, “The devil’s in the sublimits.”

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