• Capell Insurance

Traditional Policies Becoming Increasingly Ineffective...

The evolution of business can be held accountable for eroding the effectiveness of legacy insurance policies, like Property and CGL, and is prompting the insurance companies to carve-out whatever coverage remains and create new solutions. Consequently businesses must look to other insurance coverages for protection. A core issue, by and large, is that new coverages are lagging behind as development is outpaced by technology and innovation. Businesses must look to a proactive approach to prevention and mitigation as well as risk-centric insurance purchasing, not old-fashioned product dependency.

For example, cyber threats are a reality for businesses and organizations of all sizes and sophistication. New risks emerge as businesses are driven by technology and unrestricted by physical boundaries. The increasing amount of information being moved and stored electronically lends itself to interception while the rampant growth of the Internet of Things presents a never before seen scale of seemingly unlimited access points to endless information. Undeniably, a physical human component also exists ~ thieves posing as vendors, bosses & customers are targeting employees to send money and property, a risk not readily covered by many cyber or crime insurance policies.

The new Cyber & Network policies are a developing area of coverage having no uniformity through the marketplace and disputes are often costly as no precedents exist. The conditions, definitions, and exclusions span several coverage parts and various triggers with separate notice requirements, convoluted and largely unfamiliar terms, and an in-depth application process lend to the list of problems in selecting or receiving the appropriate coverage. Just because the policy says Cyber does not mean it contains what you need…

The observation of lawyers and risk professionals is unanimous - - Cyber is one of the most complex coverage areas, joining the ranks of Environmental and Directors & Officers.

#cyber #liability

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