Litigation over ADR clauses in cyber policies is already happening, as policyholders try to elide pre-dispute ADR requirements contained in their cyber liability policies. Since such litigation may itself defeat the ADR goal of efficient resolution of the dispute, it is useful to step back and consider some of the basic policyholder objections to ADR provisions. In general, ADR features (i) confidentiality protections that screen out media coverage; (ii) no trial by jury; and (iii) restricted grounds for appeal. Though often objected to by cyber policyholders, these three factors may benefit them.
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