As more and more companies of all sizes ranging across a wide spectrum of industries have been exposed to network and data security breaches in recent years, the market for insurance products dedicated to cover cyber risks has grown just as fast. With policies sold under names like “cyberinsurance,” “privacy breach insurance,” “media liability insurance” and “network security insurance,” the market for this coverage often seems chaotic, with premiums and terms varying dramatically from one insurer to the next.
Unlike more traditional insurance policies that contain very similar terms, conditions and exclusions no matter which insurer issues them, cyber insurance policies are far from uniform. Prior to placing or renewing a cyber policy, it is therefore crucial to understand not only what you are being offered, but also how to negotiate coverage for the risks inherent in your business. Every policy’s coverage is different. Before you buy or renew a cyber policy, be sure to review and understand the following guidelines.
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