What it does
CY 10 04 adds a binding arbitration condition to the ISO cyber policies (11 21 edition). Disputes within the endorsement are decided by arbitration instead of a lawsuit, and the award binds both parties as the endorsement provides. The nonbinding version is CY 10 03; states such as Kentucky, Iowa, Missouri, New Hampshire, Wyoming and the District of Columbia use their own versions.
Program context
In ISO's 2020 cyber multistate program revision, Verisk introduced a new Commercial Cyber Insurance Policy form and a new Information Security Protection Cyber Policy form that replaced all prior base coverage forms of the ISO Cyber program, together with new manual rules, loss costs and rating plan. The new forms carry the 11 21 edition (CY 00 02 11 21 and CY 00 03 11 21).
Quoting and selling notes
- Tell the client that binding arbitration replaces going to court for covered disputes.
- State law may limit binding arbitration in insurance contracts.
- Compare with CY 10 03.
