As a guest on the Chattinn Cyber podcast, Partner Peter Halprin discussed cyber insurance challenges as a result of the pandemic, and why arbitration can be an attractive option to handle disputes.
“For sophisticated entities, especially in the cyber context, arbitration can be a great way to resolve disputes,” Halprin said. “Apart from choosing the people to resolve the dispute, the main benefit of arbitration is that it is confidential, so you don’t have to publicly talk about the cyber breach or security lapse.”
Halprin suggested that when insureds are faced with business interruption claims due to a cyber attack, they should make sure they have the right legal counsel and forensic accounting specialists involved, and work with a broker to support the claims process.
“Because there are so many cyber claims arising, carriers are very quick to bring in coverage counsel on their side,” he noted, and called upon carriers and brokers to work together at that outset.
Listen to Halprin’s full interview here.