Insurance for Cyber Risks in M&A Transactions​


Summary

Data breaches, ransomware attacks and other cyber security incidents are quickly becoming the “new normal” for businesses operating in the internet age.  As a result, cyber due diligence is quickly becoming the “new normal” for buyers in M&A transactions as they seek to protect themselves against cyber risks.  Cyber due diligence, however, is only part of the solution.  Many sophisticated buyers are also relying on insurance, including representations and warranties insurance (R&W insurance) and cyber insurance, to protect themselves against cyber risks.  This practice note discusses insurance for cyber risks in M&A transactions, including best practices and potential pitfalls for acquiring companies.