Courts Strictly Construing Cyber Insurance Policies, Finding Coverage Is Narrow

In several recent cases, companies with cyber insurance discovered that provisions in these policies led their insurers to limit coverage. Courts have been strictly construing cyber policies, and have found that the coverage provided is narrow. These decisions hinged upon whether an event constituted a covered "direct" loss and whether intervening actions precluded coverage, like an employee responding to fraudulent communications.

5 minute read November 01, 2022 at 12:24 AM
By
Ella Shenhav and Eric S. Adams
Courts Strictly Construing Cyber Insurance Policies, Finding Coverage Is Narrow

In several recent cases, companies with cyber insurance discovered that provisions in these policies led their insurers to limit coverage. Courts have been strictly construing cyber policies, and have found that the coverage provided is narrow.

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