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

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

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, January 24, 2023

Recorded event now available

or call 1-800-926-7926

This CLE course will guide counsel on negotiating and drafting provisions allocating cybersecurity risks using 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. The panel also will discuss best practices when pursuing or evaluating claims made under cyber policies.


Nearly all commercial general liability policies since 2014 have excluded coverage for nonphysical loss due to data breaches. The emergence of cyber insurance policies has 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 may fall within the scope of coverage. Cyber insurance also can provide valuable coverage for third-party claims and regulatory investigations arising out of a data breach.

Counsel for insurers and policyholders must prepare to negotiate these and other specific terms such as retroactive dates and coverage for emerging data privacy risks, 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, crime, commercial property, 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.



  1. Defining the risk
    1. Data breach
    2. Internet of things and biometric risks
  2. Interplay with other insurance provisions
    1. CGL coverage
    2. D&O coverage
    3. Technology E&O coverage
    4. Property, crime, and other lines of coverage
  3. Practical guidance
    1. Procurement
    2. Claims
    3. Preventative measures
  4. Compliance considerations
    1. State law, including the CCPA, the Illinois Biometric Privacy Act, and NYDFS
    2. Federal law
    3. GDPR and other international regulations


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 procure coverage in the event of a claim?
  • What specific exclusions commonly require extra consideration from counsel?


Guilbert, Shelby
Shelby S. Guilbert, Jr.

McGuire Woods

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

Kowalewsky, Erik
Erik Kowalewsky

Kennedys Law

Mr. Kowalewsky is a Partner in the San Francisco office. His practice focuses on insurance coverage including cyber and...  |  Read More

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