With cyberattacks on the rise, having a cyber insurance policy has become a necessity for many businesses. However, not all cyber insurance policies are created equal, and some may not cover all the costs associated with a cyberattack. In this blog post, we will discuss ten costs that your cyber insurance policy may not cover and what you can do to protect your business from these unexpected expenses.
During a cyberattack, your business may experience downtime, which can lead to a loss of sales. However, some cyber insurance policies may not cover the revenue lost during this period. Therefore, it is important to check if your policy covers business interruption losses and how long the waiting period is before coverage kicks in.
Most cyber insurance policies come with a waiting period, which is the time between when the policy is purchased and when coverage starts. During this period, any losses incurred may not be covered by the policy. It is crucial to understand the waiting period of your policy and have adequate measures in place to prevent cyberattacks during this time.
Many businesses rely on third-party vendors for their IT infrastructure and software. If a cyberattack occurs due to a third party’s mistake, your cyber insurance policy may not cover the damages. To avoid this, ensure that your third-party vendors have adequate cybersecurity measures in place.
Adding new hardware to your IT infrastructure can increase the risk of a cyberattack. Some cyber insurance policies may not cover damages caused by new hardware. To avoid this, it is essential to update your policy when adding new hardware to your system.
Software upgrades can introduce new vulnerabilities, which can increase the risk of a cyberattack. Some cyber insurance policies may not cover damages caused by software upgrades. Therefore, it is important to assess the potential risks before upgrading any software and ensure that your policy covers such upgrades.
Social engineering attacks are on the rise, and they are becoming increasingly sophisticated. However, some cyber insurance policies may not cover damages caused by social engineering attacks. Hence, it is essential to train your employees on how to recognize and prevent social engineering attacks.
Cyberattacks can cause physical damage, such as damaging equipment or causing bodily harm. However, some cyber insurance policies may not cover such damages. It is important to check if your policy covers such incidents and to have adequate measures in place to prevent them.
Businesses that accept credit card payments must comply with the Payment Card Industry (PCI) Data Security Standards. Failure to comply can result in fines, which may not be covered by your cyber insurance policy. To avoid this, ensure that your business is PCI compliant and that your policy covers PCI fines.
A cyberattack can damage a business's reputation, leading to a loss of customers and revenue. However, some cyber insurance policies may not cover reputation damage. It is important to check if your policy covers reputation damage and to have measures in place to mitigate the damage caused by a cyberattack.
Account takeover schemes involve cybercriminals taking control of a business's social media or email accounts and using them to scam customers. Some cyber insurance policies may not cover such losses. It is important to have measures in place to prevent account takeover schemes and to check if your policy covers such losses.
Cyber insurance is a critical component of your business's cybersecurity strategy. However, it is important to understand the limitations of your policy and take necessary measures to protect your business from unforeseen costs. At T.A. Swain Insurance Group, we offer customized cyber insurance policies that cater to the unique needs of your business. Contact us today to learn more about our cyber insurance solutions.
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