From Cyber Secure to Insure: Surviving the Whirlwind of Lost Cybersecurity Policies – and How to Bounce Back!

Turning a blind eye to cybersecurity can lead to a nasty surprise – a Cyber Insurance Coverage Loss. So, stop being a cyber calamity, or you’ll find your insurer dropping you faster than a Wi-Fi connection at grandma’s house. Remember, honesty is the best policy… or else you might not have one at all!

Hot Take:

So you thought you were all fancy with your cybersecurity insurance until they decided to drop you like a hot potato. Turns out, paying your premiums isn’t enough to keep you in their good books. They also want to see you’re not a walking cybersecurity disaster. But don’t despair, there’s always a new policy out there, waiting to be negotiated and signed. Just be prepared, it might cost you more and provide less coverage. And remember, honesty is the best policy!

Key Points:

  • Companies can lose their cyber insurance coverage for reasons such as failing to meet cybersecurity standards, misrepresentation, or changes in the insurer’s preferences.
  • Loss of coverage can result in bearing the full financial burden of a data breach or cyberattack.
  • Companies are at risk if there’s a gap in coverage or if they fail to meet contractual obligations requiring cyber insurance.
  • For getting new coverage, it’s recommended to work with an insurance broker and be prepared for a longer underwriting process and higher premiums.
  • Improving cybersecurity posture and being transparent can help maintain a relationship with a cyber insurer.

Need to know more?

How to Lose Friends and Alienate Your Insurer

If you are wondering how to lose your cyber insurance, there are a few ways to do it. You could forget to pay your premiums, or you could have a cyber incident that makes your insurer question your security measures. Even misrepresentation in your application could make you lose your coverage before the policy period ends. Sometimes the reason is out of your control, like when the insurer decides they no longer want to write policies for your industry or revenue size.

Insured Today, Gone Tomorrow: The Risks of Insurance Loss

Losing your cyber insurance could be a sudden shock or a predictable outcome. Either way, you'll be working against the clock to find new coverage. Any cyber incidents during this gap won't be covered by insurance. Also, if an old incident is discovered after getting a new policy, don't expect it to be covered. And watch out for a tug of war between your old and new insurer over who's responsible for incidents that span both policy periods.

Bouncing Back: Getting New Coverage

Losing your insurer may not be the end. You can approach your current carrier for reconsideration or hit the market for a new one. Just be prepared for a potentially longer and more expensive process. And remember, honesty is key - your previous claims history and reasons for losing your old coverage could affect your new policy.

Prevention is Better than Cure

To avoid losing your coverage in the first place, ensure you have a strong cybersecurity strategy and are transparent with your insurer. Meet the cybersecurity standards specified by your insurer and be honest in your application. After all, it's better to prevent a loss than to find a cure after the fact.
Tags: Cyber Insurance Policies, cybersecurity posture, Insurance Loss Risks, Insurance Premiums, Maintaining Insurance Coverage, New Cyber Insurance, Policy Nonrenewal