Michael Handler of the Global Insurance Department discusses the state of insurance for present-day data breach claims in Best's Review. Dealing with cyber loss events requires cooperation to achieve resolutions efficiently and ideally with minimal delay and costs.
When multiple insurance policies cover a significant loss event, priority of coverage often becomes an issue for all of the insurers. Data breach incidents and other cyber loss events are no exception to this general rule. Insureds may request coverage from a broad array of insurance policies for a cyber event, not just from the “cyber insurer,” and multiple insurers may answer the call. This situation can present challenges, in part because the insured’s claims are usually presented on a time-sensitive basis.
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