A man types on a laptop computer in an arranged photograph taken in Tiskilwa, Illinois, U.S. Photo by Daniel Acker (Bloomberg)

How Can That Not Be Covered? I Have Cyber Insurance!

Many companies purchase cyber liability insurance to help cover their risk of computer fraud or attack. However, if not properly negotiated, some cyber insurance policies may not fully protect against all risks.



Extract from article by Thomas H. Bentz, Jr., and published by Bloomberg BNA

Many companies purchase cyber liability insurance to help cover their risk of computer fraud or attack. However, if not properly negotiated, some cyber insurance policies may not fully protect against all risks.

A common and potentially costly issue in many insurance policies is a lack of coverage for “voluntary transfers” (i.e., where the insured is tricked into voluntarily transferring money to a third party). Coverage for this type of fraud is generally available but insureds need to ask for it.

In the past few years, many companies have purchased cyber liability insurance to help cover their risk of computer fraud or attack. However, if not properly negotiated, some cyber insurance policies may not fully protect against all risks.

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