What is not included in a Cyber Insurance Policy

How to protect your iPhone from Hackers

Ever wondered what is covered and what is not in your Cyber Insurance Policy? If not, you better review the guidelines and inform all your C-level employees on strategies to cope with the losses that remain out of the cyber insurance cover.

Next, any company offering a cyber policy will surely conduct a pre-check about your IT infrastructure and inform you about the coverage and exclusions in a Cyber Liability Insurance Policy.

1.) From the client’s side, all PCs must have antivirus software and must be kept updated. Otherwise, the cyber insurer will not offer any policy coverage.

2.) If the company doesn’t have a computer firewall to protect its IT assets, it will fail in claiming coverage if at all a cyber incident strikes its infrastructure.

3.) Companies that do not have an efficient business continuity plan like failing to back-up information on media or cloud service will not be eligible to go for a claim if, in case, data gets seized by hackers.

4.) Unless a company follows a secure provisioning process with the right user permissions, it will not be eligible for an insurance claim.

If all the above-stated rules are followed, then the client will also be eligible for a cutdown in insurance premiums.

a.) However, if the client proves to be dishonest while filling the proposal form or keeps any vital info a secret, its claims can be rejected and loss has to be borne by the client.

b.) Remember, no cyber insurance policy cover will offer a loss cover incurred by bodily injury, sickness, emotional distress, disease, or the death of a person caused by a cyber attack. For instance, if a hospital is covered under cyber insurance and unfortunately a patient dies because the IT infrastructure was crippled by a ransomware attack, then the loss of that person will not be reimbursed as compensation by the cyber liability policy offering company.

c.) Some policies do not cover losses incurred by a company indulging in illegitimate data collection of individuals or clients. Thus, companies involved in marketing should ask the policy offering firm to reinstate the policy terms with these points before an initial insurance quote is offered.

d.) No insurance company offering cyber insurance will cover the losses suffered by an individual or client who has any connection with objectionable content or indulges in immoral services like terrorism, X-rated, or such content.

e.) Companies involved in virtual currency trading will also not be offered a cyber insurance cover for their digital assets. And if at all such coverage is offered, the inclusion to provide a cover to losses incurred from cryptocurrency steal is dubious.


Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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