Cyber insurance is a crucial investment for businesses that want to protect themselves from cyber threats. However, businesses should be aware of some potential “gotcha’s” when selecting and utilizing their cyber insurance policy. This blog post will discuss the top 10 cyber insurance gotchas to watch out for in 2023.
- Limited coverage: Some cyber insurance policies may have limited coverage, leaving gaps in protection that can leave your business vulnerable to attacks. Make sure to review your policy and ensure it provides comprehensive coverage carefully.
- Exclusions: Some policies may exclude certain types of cyber attacks or data breaches, such as social engineering or phishing attacks. Read the fine print and understand what is and isn’t covered.
- High deductibles: Some policies may have high deductibles that can be difficult for businesses to meet during a cyber attack. Select a policy with a deductible that your business can comfortably afford.
- Failure to meet security requirements: Some policies may require businesses to meet specific security requirements to be eligible for coverage. Failure to meet these requirements can result in denied claims.
- Failure to notify on time: Many policies require businesses to notify the insurance provider of a cyber incident within a specific timeframe. Failure to notify on time can result in denied claims.
- Insufficient documentation: Businesses must provide sufficient documentation to support their claim, including evidence of the incident and its impact on the business. Failure to provide this documentation can result in denied claims.
- Limited third-party coverage: Many policies may have limited third-party coverage, which can concern businesses that work closely with third-party vendors and partners.
- Limited geographical coverage: Some policies may have limited geographical coverage, which can be problematic for businesses with global operations.
- Insufficient coverage for lost income: Many businesses may suffer financial losses due to a cyber incident, including lost income. Make sure to select a policy that provides sufficient coverage for lost income.
- Failure to plan for the future: Cyber threats are constantly evolving, and businesses need to select a flexible policy that can adapt to changing threats.
In conclusion, cyber insurance is essential for businesses that want to protect themselves from cyber threats. However, you must be aware of potential “gotcha’s” in your policy that can leave your business vulnerable. By carefully reviewing your policy and working with a trusted insurance provider, you can ensure that your business is protected in a cyber incident.
John O’Neill Sr. rMVP