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.
Cyber Insurance & Risk Management Series
- Part 1: Quantifying Cyber Risk & Proving the Value of a Cyber Insurance Investment
- Part 2: Understanding the ROI of Investing in Cyber Insurance
- Part 3: The Devil is in the Details – Beware of Potential Cyber Coverage Pitfalls
- Part 4: The Importance of Investing in the Best Partner for Your Cyber Insurance