Partner Avery Dial, Esq., quoted in article “What Happens When You Lose Your Cyber Insurance?” in Information Week, 11-7-2023
In a world where a cybersecurity incident is considered a “when, not if” scenario, having insurance coverage can be an important way to reduce financial risk. More companies are investing in cyber insurance policies; direct written premiums increased 51% year-over-year in 2022, according to Fitch Ratings. Click READ MORE link for full article
Even the most well-prepared organizations can fall prey to cyber attackers, but some organizations are vulnerable due to lack of proper controls. “Was the claim brought about by some entrenched structural, systemic problem with the company’s cybersecurity that may make them undesirable or uninsurable?” asks Avery Dial, partner at Kaufman Dolowich and chair of the law firm’s data privacy practice group.“I would go to an insurance broker that worked with several different carriers and have that broker shop the risk to multiple carriers,” says Dial.Transparency is also important to maintaining a relationship with a cyber insurer. “If you’re not thorough and honest in the application, then you’re not going to be able to have that kind of dialogue with the insurer where they can instruct you as to what you need to be doing to remain insurable with them,” says Dial.