Cybercrime Insurance Claims

Cybercrime Insurance Claims

Regardless of a company’s or individual’s cybercrime defenses, losses will happen. Galileo Law is an emerging leader in handling complex post-incident insurance claims for individuals and businesses of all sizes. Cybercrime involves privacy and data breaches, which damage credit for individuals and organization reputation, but cybercrime is evolving to include cyber extortion and business interruption risks. The insurance industry is barely keeping up with corporate demand for cybercrime insurance, and the policies are barely keeping up with covering the evolving perils and damages. Cybercrime insurance claims pose complex coverage and compensation issues.

Coverage – Gaps and Availability

Corporate demand for cybercrime insurance is rapidly increasing in pace with the rapid cost of cybercrime to the US and world economies. Some insurance companies are offering cybercrime policies. Many carriers will only insure companies that already have robust cybercrime defense infrastructure – the companies that don’t need risk financing more than ever.

Underwriting cybercrime insurance is next to impossible. Traditional underwriting requires insurance companies to rely on huge quantities of historical data to determine what perils to cover, how much exposure they have for claims, and so how much to charge for premiums. This data does not exist for existing cybercrime – not only is the field too new, but corporate victims are reluctant to share data because disclosing major breaches would damage their reputation. The data certainly does not exist for emerging dimensions of cybercrime besides, for example, hacking an organization to steal individual identities.

As a result, even companies who purchase cybercrime insurance aren’t necessarily purchasing insurance for the next threat they face, and their policy may not cover the type of damage they suffer. Individuals have very few insurance resources available when they are direct or indirect victims of cybercrime.

Insurance Claims – A New Frontier

Cybercrime insurance claims routinely involve “first impressions.” The field is so new that little precedent guides insurers, corporations, and attorneys about how to fight for coverage and full compensation for covered losses. Galileo Law is an emerging leader in reviewing cybercrime insurance policies to find coverage regardless of the nature of the attack giving rise to the claim and prosecuting insurer’s bad faith coverage denials. When an insurance company does cover a loss, Galileo Law is an emerging leader in ensuring that individuals and corporations are fully compensated for the damage to their credit, reputation, business interruption, and legal losses, e.g., for breach of contract.


Call us right now to speak to an experienced cybercrime insurance attorney: (206) 257-6556



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