As the number of attempted and successful cyberattacks increase, interest in cyber liability insurance increases as well. This is unsurprising. Cyber claims are increasing every year, [1] and even one successful cyberattack could cause the exposure of millions of confidential records and concomitant dollar losses. Many of these cyber policies contain alternative dispute resolution provisions mandating that the parties participate in binding or nonbinding mediation and/or arbitration in place of, or prefatory to, litigation. [2] So, the question should be asked: When it comes to cyber insurance claims, does ADR work? Should policyholders object to or fight the inclusion of ADR clauses in policies of insurance covering cyber risks?

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