Mountain State Times

U.S. Senators Shelley Moore Capito and John Hickenlooper have reintroduced the bipartisan Insure Cybersecurity Act, aimed at protecting consumers and small businesses from cyberattacks by clarifying information about cyber insurance policies. The bill instructs the National Telecommunications and Information Administration (NTIA) to establish a working group to enhance communication regarding cybersecurity insurance coverage for issuers, agents, brokers, and customers. Additionally, it mandates the NTIA to provide easily understandable resources on cybersecurity insurance for prospective customers.

Senator Capito emphasized the growing threat of cyberattacks globally, stating, "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." She expressed her satisfaction in collaborating with Senator Hickenlooper again on this issue: "This legislation will assist businesses in better understanding the complex cyber insurance environment."

Senator Hickenlooper highlighted the necessity of clear policies for small businesses: "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."

Mark Montgomery, Executive Director of CSC 2.0 and Former Executive Director of the Cyberspace Solarium Commission (CSC), supported the legislation: "This legislation remains absolutely consistent with the Cyberspace Solarium Commission recommendations."

Cyberattacks pose risks to various entities including individuals, large organizations, and small businesses. Cyber insurance serves as a protective measure against threats like ransomware and data theft. However, policy details are often complex. A 2021 Government Accountability Office report noted that unclear policy language could lead to misunderstandings between issuers and policyholders.

The Insure Cybersecurity Act aims to clarify these issues for all parties involved. This legislation was previously introduced during the 118th Congress.