Although insurance coverage provides invaluable protection against disasters or unexpected issues, those are not the only contexts in which it is merited. There are also forms of insurance coverage that can protect fund managers and their portfolio companies from claims filed against them by others, which is an important risk-mitigation angle to consider. Having coverage is only one piece of the equation, however, as fund managers need to promptly and frequently engage with their insurers to successfully file claims thereunder. To consider those issues in the context of the coronavirus pandemic, Proskauer hosted a recent program which was moderated by partner Michael R. Hackett and featured insights from partner John E. Failla and senior counsel Nathan R. Lander. This second article in a two-part series details how fund managers can use insurance to protect against third-party claims and from the rising risk of cybersecurity breaches. The first article
summarized the insurance market during the coronavirus pandemic, while also providing advice on how to successfully file claims for business interruption losses caused by the virus. For more coverage of cyber insurance, see “Cyber Insurance Coverage, Pre-Breach Mitigation Efforts and Post-Breach Response Plans Can Reduce Harm to Fund Managers From Cyber Attacks
” (Jan. 19, 2017); and “Essential Tools for Fund Managers to Combat Escalating Cyber Threats
” (Feb. 4, 2016).