Bradley attorney Alex Purvis was quoted in Industry Dive on the underwhelming status of cyber insurance adoption by organizations. Of more than 500 companies in North America and Europe, only 38 percent have an active cyber insurance policy.
"Some might blame this phenomenon on fear generated by overblown news reports, but my first thought, and hope, is that more companies are learning about and coming to terms with this emerging risk," said Purvis. "Cyber risk is unique.
Right now the cyber insurance market is competitive, which means companies can buy into a policy for a lower premium, explained Purvis.
Cyber-related assaults on companies are hard to navigate through traditional insurance policies, causing businesses to look for an additional layer of protection.
"Offsetting the risk of a claim denial starts during underwriting," said Purvis.
"Too many coverage battles arise out of a lack of attention during the underwriting process," but with guidance from a company's risk management team, outside advisors or coverage lawyers, coverage can be better understood, according to Purvis.
"There is little case law interpreting these policies to date, so there is still plenty of room for legitimate debate," said Purvis.
The complete article, “Cyber Insurance Adoption Lags as Business Require Convincing,” first appeared in Industry Dive on January 28, 2019.