When a business purchases cyber insurance, they typically assume they’re now covered in the event of a cyber attack, data breach or other incident. However, insurance companies are paying out only a fraction of the time.
MSPs are uniquely positioned to both educate customers and prospects on the reality of this situation and help them do something about it. With the right combination of preventative measures and documentation, companies can vastly improve their chances of receiving renumeration after an incident.
What’s so different about cyber liability insurance?
With most insurance policies, coverage is pretty cut-and-dry. You buy the policy, and if something goes wrong you’re covered up to a certain amount after paying the deductible.
Filing a claim might be annoying and there will probably be a visit from an insurance adjustor, but you’re generally going to make out OK. But cyber insurance is more like healthcare coverage — insurers are constantly denying coverage for a variety of unexpected reasons.
These companies are out to make a profit and are looking for every possible reason to not pay out. And because cyber liability insurance is a new product offering, there’s plenty of wiggle room built into the policies that customers aren’t yet savvy enough to sniff out.