U.S. Sen. Shelley Moore Capito (R-WV) on Jan. 24 cosponsored a bipartisan bill to establish a federal working group on cyber insurance, which would develop information for issuers, agents, brokers, and customers to improve communication over cybersecurity insurance coverage levels.
“Cyberattacks across the world continue to grow in scope and scale, and it’s critical that we do what we can to identify and prevent them from occurring,” Sen. Capito said. “This legislation will assist businesses in better understanding the complex cyber insurance environment.”
“It will also help lower the cost burden victims must bear when they are attacked by cyber-criminals so businesses can continue operations and pay their workers if they are targeted,” said the senator.
Currently, the details of cyber insurance coverage are often hard to understand, according to a 2021 Government Accountability Office report, which found that ambiguity in policy language can result in misunderstandings and litigation between issuers and policyholders and that many customers, especially smaller businesses, may underestimate the coverage they need to protect against cyber risks.
The Insure Cybersecurity Act, S. 245, which is sponsored by U.S. Sen. John Hickenlooper (D-CO), specifically would direct the National Telecommunications and Information Administration to create the working group and to publish resources on cybersecurity insurance that prospective customers can easily understand, according to a bill summary provided by the senators.
“Small businesses need cyber insurance to protect their businesses and guard their data. Unclear policies and ambiguous language can leave businesses stranded after a cyberattack,” said Sen. Hickenlooper. “Easy to understand cyber insurance resources will help make sure businesses are secure, covered, and resilient.”
S. 245 has been referred for consideration to the U.S. Senate Commerce, Science, and Transportation Committee.