In March 2021, the Internet Crime Complaint Center, a division of the Federal Bureau of Investigation, released its annual Internet Crime Report. This investigation found that 2020 cyberattacks caused more than $4.2 billion in damages and led to over 790,000 official reports.
If you are a business owner, having cyber liability insurance is critical to keeping your company safe from cyberattacks, which are becoming more frequent. It's also important to thoroughly understand what your insurance policy covers so that your claims aren't denied. Take these five steps to stay on top of your cyber insurance coverage.
1. Know What Your Policy Includes
One of the most common reasons for cyber insurance claim denials is filing a claim for an issue that isn't covered. Most providers don't help with payment card industry issues, and some do not cover losses after viruses. Always read through your cyber insurance policy carefully, and if you're unsure what a clause means, consult with your insurance agent.
2. Double-Check the Terms and Conditions
Every contract contains lots of fine print stipulating what terms must be met for the contract's validity, and cyber liability insurance contracts are no exceptions. Some providers require you to install security software programs and regularly check your network for security threats. Others mandate that you change your passwords regularly, access your databases through a secure server, and take other security precautions. Look through your contract carefully for clauses that could cause your provider to deny your insurance claims if you're negligent about online safety.
3. Keep Up With Your Coverage
Most insurance companies require you to pay a monthly premium to maintain your cyberattack coverage. If you forget to make your payments and report a cybersecurity concern, your provider may cancel your coverage and deny your claim. To avoid losing coverage, set up automatic premium payments through your bank.
4. Be Careful About Proactive Action
Some business owners begin lawsuits as soon as they notice security flaws instead of waiting until a breach actually occurs. While this tactic allows you to address quickly address your security provider's negligence or malpractice, it also may lead to excessive court costs. Most liability insurance providers help you with lawsuits, but if you begin a suit before you've suffered financial damages, your provider may deny your claim.
5. Report Cybersecurity Issues Promptly
As soon as you notice suspicious log-ins or stolen data on your servers, file a claim with your insurance company. If you wait too long to file a cybersecurity report, your cyber liability insurance provider may no longer be responsible for your claims. This policy encourages you to report cyberattacks as soon as you notice them instead of waiting for them to get worse.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (877) 787-5258 to speak with one of our professionals.