Hunton Insurance Lawyers Discuss Cyber Risks to the Energy Grid in Electric Light & Power
Time 2 Minute Read

Energy industry: is your insurance sufficient to handle a major cyber event? Larry Bracken, Mike Levine and I, Andrea DeField, address this question and more in our recent article for Electric Light & Power, found here.  In the article, we identify three major gaps in cyber insurance that we routinely see when analyzing coverage for energy industry clients. The first major gap is coverage for bodily injury or property damage caused by a cyber event. Most cyber insurance policies exclude coverage for both bodily injury and property damage, even if caused by a cyber event. Meanwhile, many commercial general liability insurance policies now exclude cyber-related risks, thus creating a gap in coverage for these losses. The second gap we identify is coverage for fines and penalties, including those issued under the European Union’s General Data Protection Regulation (GDPR). Even where cyber insurance policies expressly purport to cover fines and penalties, it is unclear if these may be deemed uninsurable as a matter of public policy in certain jurisdictions. Finally, we identify a gap in coverage for business income losses when the insured’s network, or that of a vendor on which they rely, goes down. That coverage is a key component of a robust cyber program, but one that is typically only offered for an additional premium.

Our article was the first in a series of three on managing cyber risks to the energy industry and gaps in insurance coverage that may adversely affect the energy industry, and others, when responding to a major cyber event.

  • Partner

    Larry Bracken has 38 years of experience litigating insurance coverage, class action and commercial cases in federal and state courts throughout the United States. Pro bono representation of clients in habeas corpus, prisoner ...

  • Partner

    Andrea finds risk management, risk transfer, and insurance recovery solutions for public and private companies. Andrea is a partner in the firm’s insurance coverage practice where she co-leads the firm’s cyber insurance ...

  • Partner

    Mike is a Legal 500 and Chambers USA-ranked lawyer with more than 25 years of experience litigating insurance disputes and advising clients on insurance coverage matters.

    Mike Levine is a partner in the firm’s Washington, DC ...

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