Cyber Risk Coverage

Cyber risk coverage is one of the fastest-growing and most-sought-after insurance products. It is a new area to the insurance industry, and with the exponentially increasing number of claims, the market has had to learn a great deal about managing these risks in a very short period of time. As the threats and potential consequences of data breaches continue to rise, insurers face a critical need for new products or to reevaluate their existing products and pricing models.

We help our clients navigate this emerging landscape with the unique training and experience of a dedicated cyber risk team integrated with our Global Insurance Services Practice Group — a renowned insurance and reinsurance practice ranked by market leaders and top global publications as one of the world’s biggest and best practices serving this market.

Our services for insurers and reinsurers include:

  • Policy wordings and negotiations — To help minimize the risk of a potentially costly coverage dispute, our team can partner with clients to develop, draft, review, or modify policy language in order to allocate appropriately the risk stemming from data breaches and privacy issues. On behalf of insurers and reinsurers, we regularly negotiate policies and treaties with policyholders and cedents.
  • Underwriting guidelines and coverage counsel — Our Global Insurance Services team has assisted with the creation of countless sets of underwriting guidelines. Utilizing dual-qualified U.S./U.K. counsel, Goldberg Segalla has provided coverage advice for a market leader with respect to a number of claims, valued at millions of dollars, made under its cyber, privacy, and social media policies. We are well-equipped to develop applications and underwriting guidelines specifically tailored to cyber risk.
  • Reputational risk coverage — Traditional first-party and third-party policies do not take into account the cost a company incurs protecting and repairing its reputation following a data breach. We are ready to assist insurers with developing products geared specifically toward this crucial component of the data breach landscape. In fact, Goldberg Segalla lawyers worked with insurers to develop some of the first reputational risk policies that address these new and escalating challenges.
  • Coverage dispute defense — Many of the world’s largest insurers and reinsurers trust Goldberg Segalla to defend them in their highest-exposure coverage disputes, whether involving first-party or third-party claims. As recognitions like Reactions Law Firm of the Year demonstrate, Goldberg Segalla is a go-to firm globally for complex, high-risk coverage litigation.
  • Auto insurance telematics — The legal environment surrounding the issue of data privacy and ownership in auto insurance telematics is evolving, on both state and federal levels. Legislators and state regulators, however, are having difficulty keeping pace with advances in this field, and the federal government’s efforts sometimes conflict with the efforts and/or the prerogatives of state regulators under the McCarran-Ferguson Act. We are well-equipped to keep insurance carriers and producers, automobile manufacturers, telematics system vendors and technology providers, and operational and risk executives updated on the constantly evolving state of the law. We attend all meetings of the National Association of Insurance Commissioners, follow the National Conference of State Legislators’ published legal surveys, participate as speakers and workshop leaders at automobile telematics and insurance analytics conferences sponsored by private and professional organizations, and counsel clients on how to structure their telematics offerings.

Goldberg Segalla attorneys are nationally recognized cyber liability and data risks coverage specialists, and have co-authored multiple innovative insurance products widely used in the excess and surplus lines insurance market to address data and cyber protection risks.

Representative Matters

  • Goldberg Segalla attorneys represented a domestic insurer in high-profile insurance coverage litigation stemming from the Sony PlayStation data breach. We obtained a dismissal of the insurer, who issued a cyber insurance policy to the insured. 
  • Our attorneys have counseled numerous insurers on the scope of coverage under their cyber insurance policies in relation to the outbreak of class action litigation involving the capture and/or disclosure of personally identifiable information, invasion of privacy claims, and alleged violation of state and federal statutes.
  • Counseled insurer client in drafting media in the scope of coverage under their cyber insurance policy requiring specialty knowledge and industry experience in types of media and intellectual property intended to be covered and exclude certain risks.