Cyber-risk, Privacy, and Internet Insurance
Though some businesses perceive cyber-risks as new, the reality is that companies have faced and managed computer-related and internet-related liabilities since the late 1990s. As a policyholder lawyer, Marc Mayerson has provided counsel and provided thought leadership on related insurance-coverage issues since that time. The author of several articles on computer-based or cyber-related insurance published over the past 16 years, Marc Mayerson and The Mayerson Firm PLLC can provide sound advice and representation to businesses and nonprofits on the peril of cyber-related loss. With the ever shifting nature of cyber-, internet-, cloud- or web-based liability, clients benefit from having a policyholder lawyer as part of the response team.
Directors and officers face the risk of liability from inadequately managing cyber-risk. Consequently, there is an important intersection between directors and officers insurance and cyber-risk and cyber-risk policies. The purchase of D&O insurance or cyber-risk insurance policies provide the opportunity for stakeholders to evaluate the information security practices and the shifting risk profile associated with the use of computers and communications technologies. As coverage counsel, Marc Mayerson provides insight to ensure that board members are fully protected under company- or individually purchased insurance policies.
Companies face the risk of liability from data breaches leading to remediation costs, notification costs, and potentially credit-monitoring costs. here is a burgeoning, albeit still developing, array of insurance offerings intended to provide some measure of insurance coverage for data breach and its attendant costs. Such policies often will cover social-engineering and business email compromise as well as ransomware. As an immature product, there are crucial differences among the various insurance policies on the market, and any individual "cyber" policy might not dovetail with the actual risk exposures of the particular insureds. Consequently, one of valuable services provided by The Mayerson Firm PLLC as coverage counsel is to review and help tailor proposed cyber-risk policies, working closely with risk managers, CSOs, and CIOs to ensure that the policies being purchased provide real value.
The market uptake of cyber-risk policies is increasing, especially following the recently promulgated exclusions to standard Commercial General Liability (CGL) policies meant to limit or exclude coverage for cyber-based liability. Thus, a broad-minded analysis is needed to gauge how cyber policies and liability policies (personal injury and advertising injury cover ("coverage B"), bodily injury tied to some chip failure or firmware hacking, or physical property damage occurring from a cyberhacking or cyber-terrorism. Coverage advice such as provided by The Mayerson Firm PLLC can ensure there are no surprises later when a claim arises.
While consumer privacy claims may be the top of mind focus -- and the easiest to insure in today's insurance markets -- the proper presentation of data-breach claims under the new insurance policies calls for experienced coverage counsel to maximize the likelihood of recovery (and to shape the proper expectations of management as to how much insurance policies might indemnify following a loss). Every case that will be litigated over the next half-dozen years will break new ground in insurance law, which is why Marc Mayerson's nearly thirty years' experience and concurrent law-school-teaching and article writing equips him to provide creative -- and cost effective -- representation.
Any number of first-party risks, ransomware, a system failure, a cloud failure, a denial-of-service attack, or the like, can pose business-continuity risks, and insurance may be available for direct business loss and the extra-expense of co-location or disaster-recovery expenses following the policy-specified interruption, sometimes measured in terms of hours. Policyholders can turn to The Mayerson Firm PLLC to aid them in reviewing policies and properly presenting claims for coverage.
With more than a billion dollars of premiums in the cyber market, policyholders can be sure that an increasing number of confusing and competing offerings will be available for purchase, such as excess and difference-in-condition (DIC) policies, and significant monetary losses are sure to spawn coverage denials, insurer dissembling, and coverage litigation as insurers themselves worry about their voluntarily assumed risk portfolios. As coverage counsel, the Mayerson Firm PLLC stands ready to pursue meritorious claims by policyholders to obtain the fullest indemnification for which they paid and to which they are entitled.
Marc Mayerson has provided continuing education presentations on cyberinsurance for labor unions, cyber insurance and cyber security for pension and health-plan fiduciaries, insurance aspects of business-to-business transactions, and on Y2K.