The cyber insurance market is set to triple in the next several years, with experts from PwC projecting it to reach $7.5 billion by 2020. As more enterprises buy into plans to help mitigate some of the risk from catastrophic data breaches, they need to be mindful that cyber insurance isn't a panacea for IT risk management. It might be useful in helping to pay for the direct losses related to large-scale breaches of customer data--things like breach notification, forensics and even regulatory fines in some cases. However, there are plenty of categories of loss that these policies rarely cover, depending on how they're written. Experts warn enterprise risk managers to work closely with a trusted broker to ensure they get the most coverage possible, and enter these policies with their eyes wide open.
10 Things Cyber Insurance Won't Cover
Cyber insurance policies come with some important caveats to keep in mind.