BDO USA’s Gregory Garrett: Security Incidents Drive Cyber Liability Insurance Demand Among Contractors

Gregory Garrett, head of international cybersecurity practice at BDO USA, told Federal News Radio in an interview that aired Monday he has observed a growing demand for cyber liability insurance among government contracting firms due to increased breach incidents.

“It is very much real and in demand,” Garrett said of cyber liability insurance.

“While the federal acquisition regulation and the [Defense Department] supplement do not currently require companies to purchase cyber liability insurance, there have been recently some requests for proposals that have required government contractors to make sure they have adequate amount of insurance coverage,” he told Federal Drive host Tom Temin.

He discussed a clause in the Defense Federal Acquisition Regulation Supplement 252.204-7012 that requires defense contractors to safeguard controlled, unclassified information and how its implementation poses a challenge to government contractors.

He said the Trump administration has directed federal agencies to establish a risk management framework for cybersecurity and cited how the current administration holds agency heads accountable to ensure the implementation of such a framework.

Garrett also tackled the recent data breach at consumer credit reporting agency Equifax and how lapses in the implementation of security patches create a “window of opportunity” for cyber hackers.