Not having some sort of cyber risk insurance in today’s world is like not having flood insurance if you live in an area prone to flooding. The key is to understand the terms of your policy and to use a Cyber Insurance Assessment to ensure that you remain in compliance with those terms.
Here are some news articles that underscore the hidden risks associated with cyber risk insurance troubles with claims.
- What Does Cyber insurance Actually Cover?
After the National Bank of Blacksburg in Virginia suffered two data breaches—one in 2016 and one in 2017—executives must have been pleased that they had planned ahead and purchased cyber insurance to cover exactly these types of incidents.
So it came as a shock to the bank when its insurer, Everest National Insurance Co., ultimately refused to pay out a significant portion of the bank’s claimed losses of $2.4 million, offering instead only $50,000 on the grounds that the breaches were not covered by National Bank’s computer and electronic crime insurance rider. In June, National Bank sued Everest for breach of contract and a larger portion of the breach costs in a lawsuit that highlights just how nebulous and unhelpful cyber insurance policies can be, as well as how little the companies purchasing those policies typically understand about their coverage.
- Businesses Are Finding Out That Cyber Insurance Coverage Might Not Be What They Thought
Given the growing prevalence of data breaches, cyber-attacks, and network security failures, it’s perhaps no surprise that businesses of all sizes are
exploring their options when it comes to cyber insurance coverage. But are these policies really going to cover them in the event of real cyber-attacks? Evidence is building that many of these cyber insurance policies might be close to worthless, as insurance companies look for any excuse possible to avoid paying out the full amount of a claim.
Go back to The Cyber Insurance Assessment