1. Thinking that all cyber insurance policies are the same.
With more than 150+ insurance carriers offering cyber insurance, whether it is a stand-alone policy or a coverage add-on, policies and coverages vary greatly by carrier in how (and if) coverage will respond to any incident, regardless of the cause.
2. Assuming it’s covered.
In cyber insurance, what you don’t know can hurt you. It is crucially important to review the policy coverages, definitions, exclusions, and conditions. An experienced cyber insurance broker or insurance coverage counsel can best assist the company with this process.
3. Comparing cyber insurance quotes based on price.
When comparing multiple cyber insurance proposals, the biggest and most costly mistake a company can make is to compare the quotes based on premiums. An accurate comparison of the policy differences cannot be made based on the quoted premiums. The company must conduct its review and analyze the multiple policy proposals based upon the coverages being offered, policy exclusions and conditions, and the financial ratings, and claims paying ability of the insurance carrier. An experienced cyber insurance broker can help your company understand what makes one policy different from the next and assess which policy is the best match for your company's cyber risks.