Cyber
Cyber cover pays for the response, not the ransom
The valuable part of a cyber policy is the phone number, and most buyers never look at who answers it.
Ayesha Karim
5 minute read
Cyber insurance is sold on the headline of ransomware, which is why most buyers compare limits. The limit matters least. What matters is the incident response panel: the forensic investigators, the breach lawyers and the negotiators the policy puts on the phone within the hour.
Where the money actually goes
In a typical ransomware claim the largest costs are forensic investigation, legal advice on notification obligations, system rebuilding, and business interruption while systems are down. Extortion payment, where it happens at all, is often a minority of the total.
That is why a policy with a smaller limit and a strong panel usually outperforms a larger limit with a claims line that takes two days to answer.
The exclusion worth reading
Almost every cyber policy excludes losses arising from unsupported software. Running an operating system past its end-of-life date is not a technicality to an underwriter; it is the exclusion they will reach for first.
At a glance
Class: Cyber
The money in a cyber claim goes on forensics, lawyers and rebuilding. The ransom, if paid at all, is rarely the largest line.
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