Using Cyber Insurance to Mitigate Risk: Policy Management and Breach Response (Part Three of Three)

Although cyber liability insurance is designed to cover many of the losses that may result from a cyber attack, merely having a policy in place is not enough to fully protect a PE sponsor or its portfolio companies from that risk. To maximize the benefits of cyber insurance, a PE sponsor needs to understand the steps it must take under its policy both before and after a cyber breach. For this three-part series, the Private Equity Law Report spoke with legal and insurance industry experts about the current state of the cyber insurance market and what companies need to know about this risk-management tool. This third article prescribes ways to take advantage of an insurers’ pre-incident services, as well as steps to take to achieve the best coverage and breach response results. The first article covered the current insurance landscape, how to find the right insurer and advice for navigating the application process. The second article examined the cost of a policy and how much coverage is necessary, and provided insight on how companies can be savvier about having the right terms in place. See “How Fund Managers Can Prepare for the Latest SEC Cyber Sweeps” (Jul. 16, 2019); and “SEC Confirms Cyber Disclosure Expectations in New Guidance” (Apr. 26, 2018).

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