Understanding the basics of encryption is important for Cyber Risk Insurance (Data Breach, Privacy coverage). Some forms exclude claims arising from unencrypted portable media, and some underwriters will not provide any coverage if portable media is not encrypted (see our prior post on Encryption & Cyber Risk Insurance).
46 states also have safe harbor provisions regarding notification if the breached data is encrypted. Many statutes aren’t even triggered if the personal data is encrypted.
Cyber Risk insurance coverage is only one part of an overall cyber risk protection strategy, which includes encryption. Cyber Risk Insurance provides protection from the risks associated with the use of technology, including data breaches, and is inexpensive.
As a specialty wholesale broker and underwriting manager, we provide Cyber Risk insurance and cyber risk expertise to all types of organizations through retail insurance agents and brokers. Call to speak to one of our wholesale broker experts with your questions and concerns about Cyber Risk Insurance exposures, or review our website for additional professional liability information.