What are the considerations for cyber insurance in the context of mergers and acquisitions?

During mergers or acquisitions, businesses should consider the following aspects related to cyber insurance to ensure seamless coverage:

1. Due Diligence: Conduct a thorough review of the cyber insurance policies of the organizations involved to identify any gaps or overlaps in coverage.

2. Coverage Compatibility: Assess whether the existing cyber insurance policies of both parties align with the new entity’s risk profile and potential exposures post-merger or acquisition.

3. Policy Updates: Update or amend the cyber insurance policies to reflect the combined entity’s new structure, operations, and potential risks.

4. Limits and Retentions: Review policy limits, deductibles, and retentions to ensure they adequately cover the increased risks associated with the merger or acquisition.

5. Notification Requirements: Understand the notification obligations in case of a cyber incident post-merger or acquisition and ensure compliance with all policy terms.

6. Vendor Management: Evaluate the cybersecurity posture of any third-party vendors involved in the merger or acquisition to ensure they meet the cyber insurance requirements.

7. Post-Merger Integration: Develop a plan for integrating the cyber insurance policies of both entities seamlessly to avoid coverage gaps or duplication.

By considering these factors and proactively addressing any potential issues, businesses can ensure uninterrupted and comprehensive cyber insurance coverage during mergers or acquisitions.