Cyber Insurance in Commercial Contracts: Allocation of Risk, Coverage, Interplay With Other Insurance Requirements

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, July 10, 2018

Recorded event now available

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Program Materials

This CLE webinar will guide counsel on negotiating and drafting provisions allocating cybersecurity risks through the use of insurance. Our panel will discuss the increasing need for these terms, key considerations in placing coverage, and their interplay with other insurance provisions in commercial contracts.

Description

Nearly all commercial general liability policies since 2014‚Äč have excluded coverage for nonphysical loss due to data breaches. The emergence of cyber insurance policies has effectively filled that gap. However, issues like the lack of uniformity in coverages and exclusions, and vague language addressing coverage requirements, create challenges for businesses procuring cyber insurance.

Cyber insurance can provide first-party coverage for a broad range of losses resulting from a data breach. Expenses associated with engaging forensic examination teams, outside counsel and public relations firms to handle breach response and crisis communications, or remittance of any fines, penalties or extortion payments all fall within the scope of coverage.

Counsel for insurers and policyholders must prepare to negotiate these and other specific terms and conditions such as retroactive dates and coverage for employee-owned devices that may be unencrypted, as well as the scope of any coverage exclusions. Likewise, practitioners must grasp the interplay between cyber insurance and other coverage like CGL, D&O, and technology E&O policies, and how to efficiently maximize the aggregated protection they afford.

Listen as our panel of experts provides critical guidance on drafting and negotiating these essential provisions of commercial contracts.

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Outline

  1. Defining the risk
    1. Data breach
    2. Internet of things
  2. Interplay with other insurance provisions
    1. CGL coverage
    2. D&O coverage
    3. Technology E&O coverage
  3. Practical guidance
    1. Procurement
    2. Claims
    3. Preventative measures
  4. Compliance considerations
    1. State law
    2. Federal law
    3. GDPR and other international regulations

Benefits

The panel will review these and other relevant issues:

  • How does cyber insurance dovetail with other insurance policies like CGL, D&O, or E&O coverage to mitigate risk and losses?
  • How can counsel for insurers and policyholders assist in clearing common roadblocks to procuring coverage?
  • What specific exclusions commonly require extra consideration from counsel?

Faculty

Guilbert, Shelby
Shelby S. Guilbert, Jr.

Partner
King & Spalding

Mr. Guilbert specializes in assisting large businesses and financial institutions in insurance recovery actions,...  |  Read More

Steinberg, Greg
Greg M. Steinberg

Atty
White and Williams

Mr. Steinberg represents foreign and domestic insurers in matters involving D&O policies, E&O, employment...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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48 hours after event

$297

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48 hours after event

$297