Many businesses look to cyber insurance policies to protect them from data breaches. While this is an effective move, what most organizations don’t realize is the gaps inherent in some of the policies. In trying to uncover some of these gaps, we met with some of the cyber insurance experts at Greater National Group.
The most common of these gaps is found in the policies itself. Most insurers offer policies with coverage limits. Most businesses only tend to find out when it is a tidbit late. Big businesses may not find this too alarming but it is a nightmare for small businesses. This is because small businesses are usually not financially equipped to have top level cyber security systems in place. One can only imagine a situation where a data breach occurs and the business suddenly gets to know the policy has coverage limits.
Usually there limits are often termed sublimit. Sublimit is caps placed by insurers to check the amount paid for s services after a data breach. A good example will be trying to get a good PR to help with the company’s image. The insurer could put a sublimit of $150,000. This means if the breach was massive and you need PR services above this amount, the insurer will only pay a maximum amount of $150,000.