Negotiating Key Cyber Exclusions

There is no shortage of stories about data breaches. According to the Washington Post, federal agents notified more than 3,000 US companies that their computer systems had been hacked in 2013. It seems like a new cyber event is reported nearly every week. As these stories continue to grow in number, corporate America has started to explore ways to insure against this risk.

Unfortunately, cyber insurance policies are both complicated and rapidly changing. There is no standard policy form, which means the coverage offered by one insurer can (and often does) differ dramatically from that offered by another insurer.