PF Chang's Loss Highlights Common Holes In Cyber Coverage
June 8, 2016
"PF Chang's Loss Highlights Common Holes In Cyber Coverage"
In the article, insurance recovery partner Tyler Gerking commented that policyholders should understand their third-party vendor and service provider relationships and look at the proposed policy with that specifically in mind, to ensure that anytime a situation arises where liability flows back to them, they will have coverage.
He noted, unlike P.F. Chang's’ policy, some cyber policies do cover liabilities that a policyholder assumes under a contract, but it is crucial for policyholders to understand the extent of that coverage before purchasing a policy to avoid surprise denials by carriers.
"When buying policies, it is important to understand how far that 'assumed under contract' language extends," Gerking said. "Unless you are looking at that language at the outset, one might assume that a certain exposure is covered, but if it's not clear, the carrier could try to deny coverage."
Link to full article: https://www.law360.com/articles/804825/pf-chang-s-loss-highlights-common-holes-in-cyber-coverage (subscription required)