Coverage Question Series – Part 26
Post on October 26th, 2018
This is a continuing series in which we address policy coverage questions that we routinely discuss with you and your colleagues. The answers provided are based on the basic policy form, currently LPLP-1s (effective for all policies new or renewed as of May 1, 2018). Refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided here.
My work computer is locked up by someone demanding bitcoin (btc) to unlock it, am I covered?
Yes, under the cyber endorsement included with all OBLIC policies! The data breach coverage under the endorsement provides first-party coverage for cyber extortion. The problem with cyber extortion is that you usually have only a limited amount of time to deal with the issue. The endorsement requires prior consultation and written authorization prior to any payment of cyber extortion monies or cyber extortion expenses. (LPLE-93a (06-2018), pg.6). Therefore, as soon as you, or your assistant, or the senior partner becomes aware of the demand, immediately contact OBLIC to assist with getting coverage provided through the cyber coverage endorsement.
If your firm would like even more extensive cyber coverage than what is included with your OBLIC policy, we offer coverage with higher limits and broader coverage – just contact the OSBA Insurance Agency at 855-745-9222.
Practice Pro-tip: Routinely back-up your electronic files. Beyond physical destruction from flood or fire, cyber extortion can render your electronic files permanently unusable. The only way in which you know your files will be usable after one of those scenarios is to have a recent back-up of your files.
As you should expect, these Q&A scenarios are based on simple hypotheticals. Coverage determinations for an actual claim are ultimately based on the unique facts, applicable law, and the Terms, Conditions, Limitations, Exclusions, and Endorsements of your policy.
Carl Marsh, Esq.