Policy ‘landmines’ keeping cyber insurance buyers up at night

With the frequency and sophistication of cyber attacks on the rise, exemplified by the recent global ransomware attacks, risk managers are losing sleep over whether they definitely have coverage in new and established policies for such emerging exposures. (Photo: Shutterstock)

Even before a global wave of ransomware attacks in mid-May demonstrated the vulnerability of organizations large and small, many corporate buyers were already losing sleep over the lack of clarity and certainty in their cyber insurance coverage for proliferating digital exposures, judging from the attention devoted to such concerns during the recent Risk and Insurance Management Society (RIMS) annual conference.

Indeed, caveat emptor — let the buyer beware — seemed to be the unofficial theme of the numerous cyber risk seminars taking up a large portion of the event’s extensive educational program. During one heavily attended session after another, risk managers, attorneys, brokers, and consultants warned how challenging it would likely be to secure sufficient and reliable cyber coverage in this promising but problematic market.