Writing Clear Contracts for Cyber Risk Transfer
Effective contractual risk transfer is a key element in contract negotiations before a cyber event occurs.
Amid contractual negotiations over price and service levels, questions of cybersecurity, liability, and insurance can easily slip through the cracks. A lack of contractual clarity can result in later disputes over liability, who or which insurer should cover the costs, and which company should manage the incident.
Clarifying these issues can help to proactively address issues such as:
- Who is liable and to what extent?
- Who will handle the incident’s aftermath?
- Whose insurance should cover the losses?
- Does the responsible party have suitable insurance to cover costs?
- Do you have the contractual right to recover?
In this article, Marsh provides actionable guidance about the issues to consider and steps to take when negotiating contracts to ensure you are protected.