Of course, coverage provided by private policies varies, Shey notes, but typically includes costs related to business interruption, incident response, forensics, and other general services arising from a cyber event. It also covers the cost of ransom payments and negotiation fees.
Still, Shey says coverage “can be carrier- and country/region-specific, and there’s a lot to discuss.”
The insurance market has seen several years of volatility, said Andy Moss, a partner in the Insurance Recovery Group in the Litigation Department of law firm Reed Smith. A surge in cyber incidents in the late 2010s sparked a wave of claims, followed by pandemic disruptions and headline-grabbing ransomware attacks. As a result, cyber insurance rates are rising and insurers are adopting more restrictive policies, Moss said.
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