Gone Phishing: Travelers Claims Plan Doesn’t Cover Cyber Losses
Insurance Partner Thomas Bentz provided some background information to Bloomberg Law on an appeal set to take place before the U.S. Appeals Court for the Sixth Circuit regarding cyber coverage.
This litigation highlights the issues facing companies that seek to use broad insurance polices to recover losses after data breaches and cyber attacks, such as phishing schemes. It is not universally decided whether such claims are covered under general insurance policies, or if specified 'cybersecurity insurance plans' are needed. This lack of clarity has caused many issues.
"Few off-the-shelf crime policies provide cyber coverage or coverage for phishing attacks unless the insured has specifically requested it," stated Mr. Bentz. Even in those situations, there are “sub-limits of coverage” that usually range from $250,000 to $500,000.