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Risk

1/23/2018
07:50 PM
Kelly Sheridan
Kelly Sheridan
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10 Costs Your Cyber Insurance Policy May Not Cover

All the things you might think are covered but that don't actually fall under most policies.
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Losses incurred before a 'waiting period' ends
After a cyberattack occurs, the clock starts ticking. If your systems are back up and running within a reasonable timeframe, cyber insurance coverage generally will not apply. Most policies only kick in for critical situations in which systems are down for several hours or days. The average for cyber insurance is about eight hours of downtime, says Shah, and Itskovich ballparks the number around 10- to 12 hours. Even if you encounter business interruption for most of the workday, you may not be covered by your cyber insurance policy.
(Image: Patty Chan via Shutterstock)

Losses incurred before a 'waiting period' ends

After a cyberattack occurs, the clock starts ticking. If your systems are back up and running within a reasonable timeframe, cyber insurance coverage generally will not apply. Most policies only kick in for critical situations in which systems are down for several hours or days. The average for cyber insurance is about eight hours of downtime, says Shah, and Itskovich ballparks the number around 10- to 12 hours. Even if you encounter business interruption for most of the workday, you may not be covered by your cyber insurance policy.

(Image: Patty Chan via Shutterstock)

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Volnut
50%
50%
Volnut,
User Rank: Apprentice
1/29/2018 | 8:41:17 AM
Re: 10 costs potentially covered
Thank you for your insights.
Joe Stanganelli
100%
0%
Joe Stanganelli,
User Rank: Ninja
1/25/2018 | 11:53:35 PM
Re: 10 costs not covered
I think the key word here is "May". If you think of it and you ask or negotiate, you can probably get it (albeit, perhaps, not at the price you want).

There is a complaint that smaller companies have less bargaining power than large enterprises, which may sometimes be true, but more often smaller or midsize companies are simply not thinking to ask very specifically for the things that large enterprises might consider routine.
PaulWaite
100%
0%
PaulWaite,
User Rank: Strategist
1/24/2018 | 11:18:11 PM
Cyber Cover Available
The costs that you have outlined and can be covered by one insurer. As stated you just need a broker that understands the various layers of complexity between various other businesss covers as well

We have designed a cyber product for the Australian market which is tailored to an organisationa actual risk and risk transference appetite. Simply put is is "Cyber by Design".
BrianN060
100%
0%
BrianN060,
User Rank: Ninja
1/24/2018 | 9:44:15 PM
Re: 10 costs potentially covered
@MC: I like your comment.  Don't agree with all your points; but they should be voiced - in a serious consideration of the proper role of insurance in cybersecurity corporate policy; and beyond the interests of an organization or industry.  There are macro-economic implications, and broad public and social consequences to what boils down to the responsibilities of data governance.

I don't think those can be properly enumerated and assessed in a string of comments.  Maybe it's enough that the article and comments inspire a closer look at the issues involved.  
mcavanaugh1
100%
0%
mcavanaugh1,
User Rank: Strategist
1/24/2018 | 1:59:26 PM
10 costs potentially covered
All 10 of the points provided can be covered under a Cyber Insurance policy through multiple insurance companies.  The issue should not be the problems with the policy but the problems with the agents & brokers selling the coverage.  Finding a broker or agent that understands the questions to ask, the carriers in the marketplace and the coverage to be added is the most important part of obtaining this coverage. Most of the issues we hear about claims being denied arise from an insurance agent that does not understand the coverage and simply places the insurance with the cheapest carrier on the table.  If your agent does not know how to get you a comprehensive insurance policy they should know who can get you one otherwise it is time for a new insurance agent.

Cybersecurity is a risk to be managed not solved.  Any comprehensive risk management program should incorporate IT security, Internal Policies, etc... as well as an Insurance policy to transfer the risk that cannot be removed through spending money on security. 
BrianN060
100%
0%
BrianN060,
User Rank: Ninja
1/24/2018 | 9:27:16 AM
10 costs not covered
Fine article, Kelly.  If typical, what's actually covered, they could write on a post-it note (it's the exclusions that would fill the binder).  Being flippant; but the facts presented should have many reconsidering reliance on insurance, over effective cybersecurity and data management/governance policies.   
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