The Daily Journal | California Lawyer
Best Practices: Mediating Cyber Insurance Claim Disputes
July 26, 2019
By Daniel B. Garrie
With cyber threats on the rise, many companies are purchasing cyber insurance policies to help mitigate risk. However, because cyber insurance is a relatively new field, there is not currently a standard-form cyber insurance policy in the marketplace. Insurers have not settled on precedent policy language and there has been little case law on coverage disputes, creating an air of uncertainty around many facets of cyber policy coverage and a customer base of insureds with little or no knowledge of what they are purchasing.
To complicate the matter, these disputes often involve intricate information systems, which can present highly technical issues of fact. Because of these challenges, mediating cyber insurance coverage disputes with the right mediator (or mediators) is often the best course of action for both the insurer and insured.
So, what makes a mediator the “right” mediator? Company executives and their general counsel should remember that the key to successfully mediating cyber claims is using a mediator who understands insurance, the law and the underlying technical systems at play in a given cyber insurance dispute. This will article outline some of the reasons why mediating cyber insurance claims can benefit insurers and insureds, and will provide guidance on choosing the right mediator.
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