Avoiding a Coverage Glitch: Closing Potential Gaps in Cyber Insurance Coverage
Over the past decade, technological innovations have quickly transformed how companies operate their IT infrastructure. T raditional on-site servers and hardware have often been replaced or supplemented by off-site solutions such as cloud computing, SaaS (Software-as-a-Service), virtualized servers, or “Bring Your Own Device” (BYOD) programs. These developments allow a business’s IT operations to be spread across a complex IT ecosystem rather than confined to physical devices located on its premises. They have the potential to reduce costs while expanding the computing capabilities at a company’s fingertips. But they don’t come without risk. The ever-evolving nature of IT systems can create disconnects between the core features on which policyholders rely to operate their businesses—and that they seek to insure against cyber risks—and the defined terms used within their cyber policy’s coverage grant(s). While businesses may expect their cyber insurance policies to cover the ful...