CSO quoted Manatt’s Stephen Raptis, a partner in the firm’s insurance recovery practice, in an article about the best strategies for evaluating cyber insurance.
Raptis has a list of recommendations for his clients, which the publication summarizes as: Do your homework and don’t be shy about negotiating. He told CSO that companies looking to purchase cyber insurance should:
- Review specimen policy forms–very carefully–from multiple insurers to get the broadest coverage possible, paying special attention to language that could signal coverage gaps.
- Use the most favorable language from each form as leverage when negotiating with competing insurers.
- Be as complete and accurate as possible when completing the policy application. Don’t be afraid to ask broker or insurer for additional explanation or help in simplifying the application process.
- Seek out insurance brokers that are experienced in placing cyber policies.
- Pay close attention to any “retroactive date,” which may eliminate coverage for losses arising from events that precede it. Seek to have the retroactive date backdated as far as possible.
- Be wary of war and terrorism exclusions that eliminate coverage for cyber attacks from foreign countries with political, religious or social motivation, or for personal gain.
- Be wary of open-ended exclusions applicable to a policyholder’s failure to follow minimum required security practices or its own security protocols.
Read the article here.