Cyber insurance: a challenge to buy.

• Author: Kristie, James
• Position: THOUGHT LEADERSHIP - Reprint

From A Buyer's Guide to Cyber Liability Insurance Coverage by Thomas H. Bentz Jr. Copyright [c] 2015 by the author. Published by Holland & Knight (www.hklaw.com).

It seems like a new cyber event is reported nearly every week. As these stories continue to grow in number, corporate America has started to explore ways to insure against this risk.

Unfortunately, cyber insurance policies are both complicated and rapidly changing. There is no standard policy form, which means that the coverage offered by one insurer may (and often does) differ dramatically from that offered by another insurer. There is little agreement between insurers on what should be covered, when the coverage should be triggered or even how basic terms should be defined.

These differences make understanding what is and is not covered very difficult. It also makes it nearly impossible (or at least foolish) to purchase this coverage based on...