3 Reasons Why Your Client’s Cybersecurity Claims Could Be Denied
Cybersecurity is a fairly new threat that is facing many people and businesses alike. The waters of cybersecurity liability claims can be complex and fairly confusing for policyholders. Events that could qualify as claims may or may not have much merit, such as a data breach being suspected but not confirmed. Clients with little to no knowledge of computers could also experience difficulty getting claims if they’ve been slow with their response time. Help your clients get the claims they deserve by knowing these 3 reasons why their cybersecurity claims could be denied.
A Lack of Understanding
It’s crucial that policy holders know which coverage they have, and which ones they actually need. Their agent should work with your client to ensure they’ve been matched with a policy that best suits their needs.
They also need to understand what’s expected of them: applying certain security patches, using encrypted technology, or any other measures.
Late or Improper Claims
Late notice is the most common reason as to why a cybersecurity claim is denied by a carrier. So those that are not so computer-savvy are most at risk. Getting claims in on time is the best way for carriers to approve these claims, unless their policy specifically states that some lag time is acceptable.
The Contract Language
Many businesses rely on third parties to provide every day services like payroll processing, telecommunicating, and cloud hosting. These spaces, however, may provide experienced hackers with access to their system—especially if they are using a public network linking the two parties. These types of claims—third party breaches, or system connections—are typically not covered.
Cybersecurity can be a real threat to small businesses and to large corporations. As nebulous as cybersecurity policies can be, you clients deserve to have a policy that protects them, and they deserve to have a good understanding of it so they can be protected when they need it. Finding the right business insurance in Calimesa, CA can help to keep your Southern California company covered in case of a cyber attack. Serving Beaumont, Banning, Calimesa, Redlands, and surrounding areas, contact the insurance professionals at Little & Sons Insurance Services for all of your commercial insurance needs.