As with any insurance policy, for cyber insurance, it is essential to review the insurance terms. This includes not only common coverages, or the things covered by the insurance policy, but also paying extra attention to the exclusions.
Many of the exclusions in cybersecurity insurance are the same as in other policies (war and terrorism), but some are specific to cyber insurance, including:
Territorial coverage
It’s always worth checking which territories cyber insurance cover applies to. Insurance policies usually only cover damage that occurred in the country where the policy was issued. If you need an extension of coverage, you must communicate with the insurer. With us, you can extend the coverage to the territory of Europe. Due to the different legal systems and costs of legal protection in the USA, it is often difficult to provide coverage, especially for large sums insured.
Lack of security measures
The insurer may reject a damage claim if no appropriate protective measures are applied. This exclusion is not included in all policies, but you must comply with the protective measures agreed upon or required by the insurer at the time of concluding the policy.
Claims by related parties
While cybersecurity insurance will protect your business from loss of customer data and any claims arising as a result of such loss, policies do not generally include liability claims brought by entities related to your business, such as your contractors and subsidiaries partially owned by your company..
Personal injuries and material damages
Cyber liability insurance policies cover losses in the digital sphere but not damages to physical property (except for affected IT systems under some policies) or personal injuries (death, illness or bodily injury) resulting from a cyber incident, as these are often covered by other insurance policies such as property or liability insurance policies.
Critical national infrastructure
Losses resulting from failure or outage to critical national infrastructure, such as electricity, gas, water, satellites or telecommunications, are excluded. As with war and terrorism, the risk is very large and beyond the capacity of individual insurers.
Cyberwarfare
Losses to businesses resulting from cyberwarfare and cyberattacks, which may be linked to the actions of a particular country or government, are common exclusions because the risks are large and beyond the capacity of individual insurers.
You can leave us to deal with contracting a policy and choosing the best insurance coverage for you and your company. The team of professionals of the insurance broker Eurosolutions Ltd. will facilitate the entire process and provide you with the right advice and the most competitive insurance offer tailored to your needs.