What does a cyber policy cover when technology risk reaches beyond stolen data? AI-related mistakes, reliance on vendors, business interruption, and physical consequences can raise different questions for different kinds of insurance. One policy cannot be assumed to answer them all.
In the full Security Cocktail Hour conversation, Michelle Faylo, Lockton’s U.S. Cyber & Technology Leader, joins Joe Patti and Adam Roth to unpack cyber coverage and technology errors and omissions (E&O); first- and third-party loss; physical versus nonphysical consequences; a competitive insurance market; and why war exclusions become difficult when attribution is contested. Michelle also talks about the controls insurers look for, broker conversations throughout the policy year, and what CISOs and boards need to understand before renewal. The longer version retains the hosts’ discussion and the show’s informal moments.
For a tighter introduction to the insurance-coverage question, watch the 20-minute version, “When AI Goes Wrong, Is It a Cyber Claim?”. The YouTube button above opens the full interview.
This episode is a general discussion, not insurance or legal advice. Coverage depends on the facts and the policy language.
Resources mentioned:
Topics Discussed
- Cyber coverage versus technology errors and omissions
- AI-related losses and why one policy may not answer every claim
- First- and third-party losses, vendor dependencies, and business interruption
- Physical versus nonphysical consequences of technology failure
- Cyber insurance pricing and the competitive market
- War exclusions and the challenge of attribution
- Security controls and broker conversations before an incident