“The risk of loss due to some form of cyberattack should prompt employers to consider insuring against those losses. But, not all cyberinsurance policies are created equal.” Our colleague, Brian Hall, writes in the most recent Employer Law Report blog post which discusses the recent 6th Circuit case, American Tooling Center, Inc. v. Travelers Casualty and Surety Co. of America.
“When shopping for insurance to cover potential losses due to cyber activity, businesses will need to make sure that they understand exactly what the policy terms mean and what events will trigger coverage under the policy and which will not. In addition, it is important to know what the policy will pay once a triggering event occurs. For instance, will it pay for regulatory fines, the cost of sending data breach notices, the cost of identity theft services for customers, or business interruption?”