The growing percentage of businesses that purchase cyber security and data privacy insurance portends a growing number of claims and, inevitably, litigation over some of those claims. Wells Fargo’s 2015 Cyber Security and Data Privacy Survey: How Protected Are You? indicates that nearly half (44%) of companies with $100 to $500 million in revenue that have cyber security and data privacy insurance have filed a claim with their carriers at some point. But 96% of those companies that filed a claim are satisfied with their coverage and the insurers’ handling of the claim. If the data can be extrapolated, then the remaining 4% are in or could end up in some sort of dispute resolution proceeding – small by percentage but potentially large in terms of the direct and indirect costs that can arise from cyber risk.
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