Cyber Insurance Exclusions: Whats Not Covered?

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Cyber insurance is a lifesaver these days, isnt it? But before you think youre completely shielded from every digital disaster, lets talk about cyber insurance exclusions – whats not covered. Its, like, the fine print nobody really wants to read, but totally should.

First up, (and this is a biggie), is often pre-existing conditions. managed services new york city Imagine, uh, youve already got a leaky roof, and then you buy home insurance. They probably wont cover the damage caused by that leak, right? managed services new york city managed it security services provider Same deal with cyber insurance. If you knew about a vulnerability in your system before you got the policy, and that vulnerability leads to a breach, dont expect a payout. Oops!

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Then theres acts of war. No insurer, Im telling you, is gonna cover damages from a cyberattack launched, you know, by a nation-state as part of a larger conflict. Its just too big of a risk. managed service new york Same goes for, like, terrorism.

Another common exclusion is employee dishonesty. If one of your own employees intentionally messes things up – steals data, sabotages systems – your policy might not cover it. Youd probably need a separate fidelity bond for that, I guess.

And lets not forget about infrastructure failures. check managed it security services provider If your internet provider has a major outage, or the cloud service you rely on goes down, and it causes you to lose business or data, that often isnt covered. managed it security services provider Cyber insurance typically deals with attacks, not just, you know, technical glitches.

Plus, some policies wont cover, like, the costs of upgrading your systems after an attack. managed services new york city They might pay for data recovery and legal fees, but not necessarily for, you know, completely revamping your security infrastructure to prevent future incidents. Thats often considered a business expense, I'd say.

Finally, theres the "failure to maintain security" clause. If youre, like, neglecting basic security practices – not patching software, using weak passwords, ignoring security alerts – and that leads to a breach, the insurer might deny your claim. You gotta actually try to protect yourself; you cant just rely on the insurance! Whoa!