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2 Cyber Insurance Coverage Pitfalls You’ll Want to Avoid

2 Cyber Insurance Coverage Pitfalls You’ll Want to Avoid

Buyer beware: all cyber policies are not created equal. There is no standard cyber insurance policy that works for everyone. And, having the wrong type of policy in place can provide you with a false sense of security that ultimately leaves you exposed. In this post, we’re going to cover the top two cyber insurance coverage pitfalls you’ll definitely want to avoid.

Pitfall #1: Assuming You’re Already Covered

Many businesses assume cyber incidents are covered under an existing business continuity policy or property damage policy. This is a dangerous assumption to make. After all, you run the risk of being financially liable should your organization experience a breach. Plus, the cost of remediation and legal battles add up quickly. In fact, it can add up so quickly that it could have a detrimental impact on your business. Sadly, some businesses never recover at all.

Pitfall #2: Including the Wrong People in the Conversation

Cybersecurity is a complex topic and each business has a unique digital risk. This can only be uncovered by having the right people in the room to get on the same page about cyber risk and the financial exposure it creates. After that, you can build strategies that will help you mitigate the risk.

Carriers look favorably on insureds with a culture of cybersecurity. As such, you will want to identify who on your team is responsible for the following:

  • Selecting and buying cyber insurance
  • Filing a claim in the event of a data breach
  • Managing and mitigating cyber risk
  • Cyber Coverage Pitfalls Revealed

Cyber Insurance Coverage Pitfalls and Your Options

These are just two of the pitfalls you definitely want to avoid when considering cyber insurance. But, we’ve identify others as well. We get into more detail about this topic inside our resource, The Devil is in the Details: Beware of Potential Cyber Coverage Pitfalls. Inside this resource, we will help you better understand what your cyber policy covers and how it works when you need to use it. You can view or download it here for free:

Trusted Cyber Insurance Experts

Are you on the market for cyber insurance or looking to update your existing coverage? If so, an experienced insurance broker will have a pulse on the cyber risk landscape and carriers’ changing expectations. Burnham WGB’s Cyber Insurance Experts can help quantify your cyber risk and stay ahead of malicious actors. Contact us for help managing your cyber risk.

Additional Resources

Cyber Insurance & Risk Management Series