Cyber incidents increasingly create complex financial losses that may implicate several insurance policies at the same time. This course examines how a single cyber-driven event can trigger cyber, crime/fidelity and D&O coverage, creating difficult questions about which policy responds and how responsibility is allocated among carriers.
Using a practical fact pattern involving a phishing attack, fraudulent wire transfer, data breach, regulatory investigation and investor claims, Mike Pepe walks through the major coverage issues that can arise following a cyber event. Participants will examine the distinctions among first-party cyber coverage, crime insurance and D&O/management liability coverage.
At the end of this CLE, attorneys will be able to:
* Identify the cyber, crime/fidelity and D&O policies that may respond to a complex cyber-driven financial loss
* Distinguish among key first-party, third-party, crime and management-liability coverage grants
* Analyze how fraudulent wire transfers, data breaches, regulatory investigations and investor claims may trigger overlapping coverage
* Recognize common exclusions and coverage traps that may limit or defeat recovery
* Evaluate notice, privilege, vendor-selection and allocation issues that arise when multiple carriers may be involved
* Apply practical claim-handling strategies designed to preserve coverage positions and maximize insurance recovery
This CLE also addresses common exclusions and coverage traps – including prior knowledge, fraudulent conduct, contractual liability, direct-loss requirements, voluntary parting, ownership issues, insured-versus-insured exclusions, prior acts and conduct exclusions. These provisions can significantly affect whether and how a financial loss is covered.
Finally, the program provides practical claim-handling strategies designed to maximize insurance recovery. Topics include giving broad notice, building a coverage matrix, preserving privilege, carefully describing the loss, tracking costs by category, complying with vendor and consent requirements, and preparing for allocation disputes among multiple carriers. Michael Pepe is a Partner in SDV Fenchurch’s Connecticut office, where he represents policyholders in complex insurance coverage matters, with a particular focus on the construction industry.