In the fallout from the massive ransomware attack that infected more than 300,000 computers in 99 countries in May, many companies have expressed renewed interest in cyber insurance.
McGuireWoods partners L.D. Simmons II and Joshua Davey and counsel Lowndes Quinlan provided an overview of available coverage and recommendations for buyers, in an article written for the August/September edition of Today’s General Counsel, titled “Buying the Right Cyber Insurance Policy.”
“Cyber policies have evolved rapidly over the last several years as the insurance industry seeks to align available coverage with risk and demand while avoiding massive losses,” the authors wrote. All three authors are members of McGuireWoods’ insurance recovery industry team and based in the firm’s Charlotte office.
While standard first- and third-party policies may provide some protection against cyber risks, the authors explained, insurers are increasingly excluding such coverage from standard property, commercial liability, and directors and officers liability policies. With a variety of cyber insurance options available on the market, it is important for companies to focus on purchasing coverage that specifically suits their needs, the authors concluded.