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Insurance

Apr. 17, 2026

The disappearing right to independent counsel in cyber insurance

Insurers routinely deny policyholders the right to independent defense counsel under cyber policies, despite longstanding California law requiring it when conflicts of interest arise.

Richard DeNatale

Richard DeNatale is recognized as one of the nation's leading authorities in cyber insurance. He has represented over 125 companies in obtaining coverage for data breaches and cyberattacks, including some of the largest in history. DeNatale is semi-retired after a career of almost 40 years in Big Law, most recently as a partner at Jones Day.

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The disappearing right to independent counsel in cyber insurance
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It has been established law for more than 40 years that when an insurer provides a defense under a commercial general liability (CGL) policy but reserves the right to deny coverage based on issues in the underlying lawsuit, the policyholder is entitled to select independent counsel to defend the claims. This right to independent counsel provides important protection for policyholders. It eliminates the risk that defense counsel appointed by the insurer might litigate the unde...

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