Cyber Insurance Purchases Will Surge With California Privacy Law

U.S. companies are turning to cybersecurity insurance to protect themselves from lawsuits and fines with enforcement of California’s landmark privacy law set to begin July 1, attorneys say.

San Francisco-based Coalition, which calls itself the fastest-growing cyber insurance provider, got more than 2,000 requests for policies in December and January to protect against California law violations, said Joshua Motta, Coalition’s CEO. A “surge” in buying will follow the first lawsuits and enforcement actions, he said.

California’s law “will drive more companies to buy,” said Daniel Burke, national cyber practice leader at Woodruff Sawyer & Co. in San Francisco. His clients, ...