Jenner & Block

"Federal Court Examines Possible Implications of Delays in Investigating Cyber Insurance Claims," Insurance Law Update

A recent Federal Court decision examines the importance of an insurer’s timely claims handling procedures in the context of cyber insurance policies.  The case reveals that courts, when interpreting duties under cyber insurance policies, may be inclined to apply a heightened standard of care to an insurer’s delay in investigating cyber insurance claims even when the insurer is found to not owe coverage under the policy.  The decision supports the need for diligence in an insurer’s investigation of claims under cyber insurance policies.