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Recent Cases Highlight Potential Pitfalls of New Cyber Insurance Products

June 14, 2016, Covington Alert

Two recent litigation developments involving cyber insurance serve as a useful reminder to policyholders: a cyber policy purchase can be full of traps for the unwary. This alert discusses the traps that resulted in one company losing coverage for a major portion of its losses from a payment card data breach, while another company faces a lawsuit by its cyber insurer seeking to void its policy. It also offers practical tips to avoid these traps.

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