It is no mystery that traditional liability insurance policies do not have the capability to adequately cover cyber risk. We have all heard the horror stories when individuals thought they were protected, only to find after a cyber-breach their claim would not be paid out due to a technicality. The scope of general liability coverage is often too narrow to cover the vast technicalities associated with cyber breaches.
Individuals and corporations are now looking towards standalone cyber coverage or “add on” coverage to existing policies to protect themselves from the additional risk. The variability of cyber breaches makes writing cyber insurance coverage difficult to nail down; however, cyber’s “non-standardized nature” presents insurers an opportunity to design coverage with a company’s specific risks in mind.