Debating Cyber Liability Coverage Adequacy

From the fun and fast-moving 2013 PLUS Conference session “Cyber Liability Speed Debates,” moderator Jake Kouns (Markel) asks the question…

Do the current cyber liability policies on the market today provide sufficient coverage for insureds?

Panelists Meredith Schnur (Wells Fargo Insurance Services) and Theodore J. Kobus III, Esq. (BakerHostetler) debate this issue.

For much more on this quickly-evolving coverage area don’t miss the 2014 PLUS Cyber Liability Symposium, April 24 and 25 in Atlanta. Registration is now open.

PLUS members can view this entire session, and many more from past PLUS Conferences and Symposia, in the PLUS Multimedia Library.

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About plushq

The Professional Liability Underwriting Society (PLUS) was founded in 1986 by industry professionals who recognized the need for a forum for individuals involved in the field of professional liability. The Society is a non-profit organization with membership open to persons interested in the promotion and development of the professional liability industry. Membership consists of over 6,500 individuals, representing over 1,000 companies active in the many fields of professional liability. PLUS currently receives the support of more than 200 companies through corporate membership. PLUS is recognized as the primary source of professional liability educational programs and seminars, assistance to its members to help serve clients, and information regarding professional liability. The Society is continually seeking new means to fulfill its mission statement and better serve its members.

1 thought on “Debating Cyber Liability Coverage Adequacy

  1. Great debate. One item not addressed regarding inadequacy of coverage is the “known unknowns” (things we know we don’t know) and “unknown unknowns” (things we don’t know we don’t know) exposure to quote a Donald Rumsfeld term. The question I have about adequacy of limits and coverage relates to the unknown path the plaintiff’s bar is going to find to develop an attack on these exposures.

    We saw this in the nursing home malpractice arena where plaintiffs developed a template to identify and litigate malpractice claims. It is inevitable that some enterprising plaintiff attorney is going to find a method of sourcing cyber liability claims and develop a template which will then flood the market with lawsuits (many likely frivolous).

    Once this happens, the coverage and limits will likely be found to be inadequate or underpriced similar to the malpractice. The unknown path of the plaintiffs will take could lead to serious inadequacies.

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