Today’s Digital World
In today’s digital world, some of our most substantial assets aren’t things you can hold in your hand. Massive amounts of valuable data are stored on hard drives or in the cloud, and consumers expect this data to be protected. So what happens when it’s not?
Companies dealing with customers’ personal or sensitive information need a cyber insurance policy. When a data breach or hack occurs, cyber insurance steps in to help the business manage the fallout by covering the cost of legal issues, business interruptions, and more.
Why Was Our Cyber Claim Denied?
To keep your cyber insurance claim from being denied, avoid the following potential pitfalls:
- Delays: Be sure to avoid any delays in reporting a cybercrime. If incidents are not reported immediately, it may be cause for denial.
- Documentation: When in doubt, document everything! Lacking records that track cybersecurity protocols, what occurred during the hack, and how your organization responded will make it easier to deny claims.
- Cyber Security: Having subpar cyber security protocols or poor employee training can lead to an insurer denying your claim.
- Risk: If you know of any potential risks (past breaches, cybersecurity weak points, etc.), you will need to disclose these to your insurance agency. A lack of disclosure of risks can create issues with claims in the future.
- Policy Limits: If the cyber attack results in losses that exceed your policy limits, your insurer may only pay a portion of the claim or deny it altogether. Ensuring you have the right amount of coverage is paramount.
Looking for Guidance?
Navigating the world of cyber insurance can feel daunting. If you have any questions or are looking for guidance about the types of coverage you might need for your business, please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont.
We give out $25 gift cards for referrals that become our insurance clients.
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