Steven Weisman was asked about insurance coverage implications regarding the U.S. Securities and Exchange Commission’s recently issued final rule concerning public companies’ reporting of a cybersecurity incident. The SEC’s disclosure rule raises, among other things, the possibility of investigations against policyholders who in turn may look to their cyber insurance policies for coverage for such investigations. According to Steven Weisman, “If their policies, for one, do not provide coverage for regulatory proceedings, or two, they do but don’t extend to regulatory proceedings by the SEC, they certainly should start to have conversations with their insurance broker, should start to have conversations with the insurance marketplace about whether there’s the ability to expand that coverage.”
8.21.2023