In the insurance industry, an “endorsement” is used to amend an insurance policy. Endorsements can be used to add items to a policy, amend policy provisions, or update an insured’s coverage. Endorsements also can be used to provide directions to third parties with whom an insured can work if a claim is made under a policy.
Specifically, insured parties can use endorsements in connection with their cyber insurance policies in order to set in advance the outside advisors – e.g., cyber forensic consultants, outside legal counsel, P.R. firms, etc. – that the insured will utilize in the event of a cyberattack, data breach, or other event triggering the cyber policy. Many companies who are victimized by cyberattacks or data breaches often waste critical time in the crucial hours and days after an attack trying to find appropriate forensic consultants and outside counsel. Even companies who have cyber insurance policies often suffer from delays in being paired with “panel” forensic and law firms recommended by their carriers. Moreover, the insured party typically has no prior relationship with the panel firms, which can result in further delays as the consultants and law firms have to obtain a basic understanding of the business and their points of contact before beginning the substantive response efforts that are so vital to success.