Common Issues Regarding Cyber Insurance

Operating a business in the digital era requires owners and decision-makers to be aware of evolving cyber risks and exposures.

To combat potential issues, many companies have come to appreciate the importance of cyber insurance.

However, while having an insurance coverage can cultivate financial security and peace of mind for policyholders, this shield is not without weaknesses.

Fortunately, by understanding possible cracks in the armor of cyber insurance, your company may be well-positioned to account for potential issues and limit the resulting consequences. Affordable Insurance Providers can guide you through this complicated subject.

Three Things to Consider About Cyber Insurance

Although cyber insurance is advisable, your business must be aware of its coverage, limitations and exclusions to ensure optimal return on your investment. Consider the following potential issues with cyber insurance that may need to be addressed:

1. It does not replace cybersecurity. Although it may provide you with the means to financially respond to cyberattacks, data breaches and other cyber incidents, policies should not be confused with actual cybersecurity measures. Cyber insurance can offset damages following an incident but does not do anything to prevent them in the first place. Preventing incidents from occurring in the first place is the easiest way to limit losses and may also help keep your cyber insurance rates from increasing. Additionally, failing to implement cybersecurity measures could cause claims against your policy to be denied.
2. It can be costly. Cyber insurance can provide robust and versatile financial protection from many cyber threats. However, given the potentially significant losses that may arise from even a single cyber incident or data breach, premiums can be costly. To ensure you are maintaining sufficient coverage while getting the best possible rate, enlist the services of an independent insurance agency, such as Affordable Insurance Providers. Independent agents can work with multiple carriers to peruse many coverage options and secure policies tailored to your needs, budget and other unique circumstances.
3. Its needs may be complicated. Determining the amount of cyber coverage needed can be a complex issue that requires a thorough analysis of cyber risk levels and potential losses, including third-party damages for which you could be held liable. Additionally, your company should consider the details of its data storage, including amount and type (e.g., social security numbers, health records and banking information).

We’re Here to Help

At Affordable Insurance Providers, we realize that cyber insurance is often essential, but also complex. Our dedicated agents are standing by to assist you in exploring possible policies and securing the right coverage. Visit our website or call 318-687-0600 to get started today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.