Cyber Risk: Insuring the Digital Age

Abstract

Cyber insurance is a relatively new product, but it offers an important revenue stream for insurers, vital protection for companies and assistance to government in its efforts to improve cyber security. Traditional policies may provide some cover for cyber risks, but insurers are keen to exclude such risks and create a separate market for cyber insurance. This paper looks at the reasons for the development of this new insurance market and the way the courts (in the US at least) have responded to the efforts of insurers to resist claims under existing policies, and it discusses the sorts of issues that cyber policies address.