Demand for cyber insurance grows to protect companies from breaches
Walter Andrews, partner at Hunton Andrews Kurth LLP, details the growing popularity of insurance for data breaches, and why one policy doesn’t fit all.
Because of the increasing prevalence of cyberattacks, A growing field is cyber insurance, a service for protecting the increasingly expensive breaches that impact companies and federal contractors. Walter Andrews, partner at Hunton Andrews Kurth LLP, says that while more cyber insurance providers are popping up, the policies are not all equal.
“This is a very tricky area because it is so new. Brokers don’t understand it yet; the buyers don’t understand it yet. The courts are still really grappling with these new policies.There are over 100 different insurance companies that sell something they purport to call cyber insurance. As I say, you’ve read one cyber insurance policy, you have read just one cyber insurance policy. They are very, very different from each other,” said Andrews. “There are gaps in them, things that aren’t covered that should be covered. Having sophisticated cyber insurance counsel can really help to make sure those policies actually respond to the exposures that the government contractor has.”