Global Webpage Flaw Unlikely to Spur Big Insurance Losses, Law360

Partner Emily Garrison spoke with Law360 about the potential cyber insurance implications of newly discovered vulnerabilities affecting a widely used website scripting language and the circumstances under which insurers may deny coverage for related cyber incidents.

Emily cautioned that companies should be mindful of representations made to insurers about their vulnerability management and patching practices when seeking coverage following a cyberattack. However, she noted that the existence of an unpatched vulnerability does not automatically justify a coverage denial.

“Even if an organization has an unpatched vulnerability, an insurer can’t necessarily rely on that fact to deny coverage for an unrelated incident — the insurer may need to establish the connection between the failure to patch and the resulting loss,” she said.

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