This is part of our blog series of continuous dialogue that you should be having with your Executive Leadership, to make them aware of issues that they should be making organizational decisions on:
“There is ongoing litigation whereby most insurance carriers are pushing back against its clients when it comes to “Cyber” security-related claims under an organization’s general liability insurance. Most recently, the insurance carrier for P.F. Chang is taking legal action against P.F. Chang’s claim that their commercial general liability policy covers defense cost and provides indemnity coverage for their recent credit card breach.
Leadership needs to understand that our general liability coverage will most likely not cover a digital security event, even if the coverage wording is vague (the carrier will most likely still fight against it, to avoid precedent-setting cases). If we want to pursue coverage for digital security issues, we would need to pursue a separate policy/rider specifically for it.”
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