U.S. Sens. Shelley Moore Capito (R-WV) and John Hickenlooper (D-CO) introduced legislation designed to protect consumers and small businesses from cyberattacks Monday.
The Insure Cybersecurity Act would provide clearer information about cyber insurance policies. Specifically, the bill would direct the National Telecommunications and Information Administration (NTIA) to create a dedicated working group tasked with developing information for issuers, agents, brokers and customers to improve communication over cybersecurity insurance coverage levels. The legislation would also direct the NTIA to provide easily understood information on cybersecurity insurance to prospective customers.
“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,” 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.”
Cyber insurance provides businesses with a tool to lower their risk from threats like ransomware, data theft, denial of service attacks and intellectual property theft. If a cyberattack is successful, cyber insurance policies can provide businesses with resources to recover quickly.
Capito and Hickenlooper’s offices pointed out that it is often difficult to understand the details of cyber insurance coverage. A 2021 Government Accountability Office report found that policy language can be ambiguous resulting in misunderstandings and litigation between issuers and policy holders. The legislation would benefits policy issuers and policyholders, the law makers said.
“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,” Hickenlooper said. “Easy to understand cyber insurance resources will help make sure businesses are secure, covered, and resilient.”