While cyber insurance provides valuable protection, understanding coverage limitations and exclusions is essential for comprehensive risk management.
Common Coverage Exclusions
Acts of War and Terrorism
Most policies exclude:
- Nation-state sponsored attacks
- Cyber warfare activities
- Terrorism-related cyber incidents
- Government-ordered shutdowns
Intentional Acts
Coverage typically excludes:
- Insider threats and malicious employees
- Intentional data sharing violations
- Criminal activities by business owners
Infrastructure and Operations Gaps
Outdated Systems
Policies may exclude losses from:
- Unsupported operating systems
- Unpatched software vulnerabilities
- Systems without adequate security measures
Cloud Service Dependencies
Coverage limitations for:
- Third-party cloud provider outages
- SaaS application failures
- Vendor data breaches affecting your business
Addressing Coverage Gaps
Strategies for comprehensive protection:
- Implement robust cybersecurity measures
- Maintain updated systems and software
- Consider specialized endorsements
- Develop incident response procedures
- Regularly review and update coverage