“We have cyber insurance, so we’re covered.” That assumption is dangerous.
A cyber policy can be an important financial resource after a security incident. It may help with:
- Forensic investigation
- Breach response and legal costs
- Customer notification
- Data recovery
- Business interruption
- Ransomware extortion
- Certain third-party claims
Where Coverage Can Fall Short
A policy does not cover every loss – and it cannot stop an incident from happening. Common gaps may include:
- Social-engineering fraud: A fraudulent wire transfer may require a specific endorsement.
- SaaS-provider outages: Lost revenue may not be covered without dependent business-interruption protection.
- Physical damage: Damage resulting from a cyber event is often excluded.
- State-sponsored events: “Acts of war” exclusions can create uncertainty or restrict coverage.
- Policy limits: A covered claim can still exceed the amount available under the policy. If an incident costs $250,000 and the policy limit is $100,000, the remaining $150,000 is still your organization’s responsibility.
Insurance Is One Layer of Protection
Cyber insurance is a financial backstop. It transfers some risk after an event, but it is not a substitute for a cybersecurity strategy designed to prevent, detect, contain, and recover from an attack.
Insurance helps you recover financially. Security helps reduce the chance that you will need to file a claim at all. Protect more than your policy. Contact DataLink today.
(410) 729-0440 | Email
