You pay your company’s annual premiums on time for your cyber insurance policy, so you think that you’re covered if anything were to happen. Any rational person would think so, too, but the fact is that many insurance companies are denying payouts to companies when the claimant company has experienced a data breach.
In 2018, The Data Investigations Report by Verizon had found that 73 percent of data breaches were from external sources, and 28 percent directly involved employees or insiders. You would think that regardless of how the data breach happens, that your insurance policy would cover the aftermath, that’s why you have it, right? Well, commonly, companies are finding out that the fine print in their policies is preventing a payout on the claim.
There are some major flaws that are often overlooked in cyber security policies:
- They cover attacks or hacks, but not accidents and errors
- They cover only the costs required by law, not the total cost of the incident
- Coverage is limited to network disruption, not business disruption
- Systems provided by outside service providers are usually excluded
- Systems that are still being developed are excluded
- Incidents that are caused by contractors are usually not covered
- The coverage limits are often drastically insufficient to pay the likely costs of remediation
We are not suggesting that you cancel your cyber insurance policy; we just don’t want businesses to find out what they’ve been paying for when they need the insurance company’s help the most. Like any type of protection, it is wise to have a plan that will cover every aspect of a data breach, including fixing the identities of the employees or customers who have been compromised due to the data breach incident.
LibertyID is the leader in identity theft restoration, having restored the identities of tens of thousands of individuals without fail. If you retain personal information on your customers, now it is the time to get data breach planning and a response program in place with our LibertyID for Small Business data breach defense program. With LibertyID Enterprise you can now add value to existing products, services, or relationships by covering your customers, employees, or members with LibertyID’s fully managed identity theft restoration service—at a fraction of our retail price—with no enrollment and no file sharing. We have no direct communication with your group members–until they need us.
Call us now for a no obligation proposal at 844-411-LIBERTY (844-411-5423).