Houston, Texas
Cyber Liability Insurance Claims Attorneys

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”“McLaurin Law pays attention to their clients and works around their clients’ needs. They took time to hear the case with patience and provided us assurance and comfort to handle the case quickly and properly. They kept communicating with us and provided updates in a timely manner. Would recommend!”

- Sunita Raj

What Is Cyber Liability Insurance?

Cyber liability insurance is a fairly new entry to the insurance industry, and it has often been compared to the Wild West. The policies are as varied and confusing as they are numerous. Basically, a cyber policy is meant to reimburse a business for losses occurring from online operations, whether it be from ransomware demands, outright fund transfer theft, or the hijacking of emails to rob customers and revenue from another business.

According to the cybersecurity organization known as Coalition, cybercrime is estimated to cost businesses $1.5 trillion every year despite cybersecurity expenditures of $120 billion.

Cyber liability insurance is meant to provide protection if your business suffers a loss due to cybercrime, but like all insurance policies, the fine print can come back to haunt you. When you purchase a cyber liability policy, you must ensure that it really protects what you think and hope it will.

McLaurin Law attorneys are familiar with the trick questions and bad faith tactics of insurers and will press your claim aggressively.

How the COVID Pandemic Changed Cyber Liability Claims

The pandemic brought about various long-lasting changes to the global workforce landscape as it forced more people to work online. As a result of remote work arrangements, cybercriminals became bolder, exploiting employees at home who were unfamiliar with their tactics and often lacked the proper security software.

Coalition’s 2020 Cyber Insurance Claims Report shows that cybercrime rose 57 percent in the wake of COVID-19. Ransomware attacks were the most frequent cause of loss at 41 percent, followed by funds transfer loss at 27 percent, and business email compromise at 19 percent – a total of 87 percent of all claims for losses.

Exclusions in Policies to Deny Your Claim

As with all insurance plans, exclusions are often enumerated in the policy to give the parent company legal wiggle room to deny your claim. Exclusions you should enquire about – and look for in the fine print – include:

  • Improper Security Standards: Policies often require “industry standards.” Get clear definitions or shop for a policy without this vague exclusion.
  • Prior Acts: Most policies exclude cybercrimes that started before your coverage began, even if you only just discovered the breach.
  • Ransomware Demands: If hackers hijack your site, the cost of the ransom payment is frequently excluded from standard cyber insurance.
  • PCI Fines and Assessments: If a hack leads to stolen credit card data, your policy might not cover the resulting bank fines or PCI penalty fees.
  • Stolen Laptops: Insurers may deny your claim if a laptop is lost or stolen. Standard coverage often excludes hardware theft losses.

Other cybercrimes may also be excluded, including rogue employees who steal data, data culled from dumpster diving, being duped into making a payment from.

Cyber Liability Insurance Claims Attorneys in Houston, Texas

Insurance companies are in the business of making money, so they hire claims adjusters to find ways to lowball or outright deny claims. Do not deal with the adjusters by yourself. Rely on the attorneys at McLaurin Law. They have years of experience in dealing with the questions and demands of adjusters. If you have suffered a loss from cybercrime in or around the Houston area and are getting the runaround from your insurer, contact McLaurin Law immediately.

CALL (713) 528-8012

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