Government contractors increasingly eye insurance to transfer cyber risks

Government contractors increasingly eye insurance to transfer cyber risks

October 1, 2014, Inside Cybersecurity

Covington's David Fagan and Marialuisa Gallozzi are quoted in this article regarding a symposium co-hosted by Covington & Burling and George Washington University's Cybersecurity Initiative titled "Cybersecurity for Government Contractors."

"That is the bubble that we're sitting on at this moment," said Covington and Burling insurance attorney Marialuisa Gallozzi at an event addressing cybersecurity issues for government contractors. "We are right at a turning point in terms of risk-shifting in the insurance industry."

"Security attorney David Fagan said there is a policy point of view holding that cybersecurity should follow a market-based approach and actually look to the insurance market for guidance on bolstering cybersecurity."

"Fagan said the underwriting process has the insurance provider assessing a company's cyber risks and taking that into account when deciding whether to provide coverage or not. That, he said, provides a market-based mechanism to encourage improved cybersecurity."