Cyber insurance policy limitations can create potential coverage gaps and create problems for today’s insureds and agents.
A cyber risk loss – the risk of disruption, damage, or financial loss, including loss of reputation to a business through its information technology (IT) systems – is one of the most significant risks facing businesses today.
The problem? Many business owners simply endorse a small amount of cyber coverage on their business owner’s policy; however, this approach is inadequate. The Ponemon Institute’s 2008 Cost of Data Breach Study: Global Overview found the average total cost of a data breach was $3.86 million. Even if a company’s exposure to loss is minimal because it involves only a few customer records, the aftermath of a data breach can bankrupt a small company.
The solution? Education…read this whitepaper for a comprehensive understanding of cyber policy limitations and how you can protect your clients with the right coverage.