Cyber threats may require more customization of insurance coverage than other risks, according to a new report from Mactavish.
Mactavish, a group that specializes in insurance governance, surveyed around 700 senior managers in the UK and found that fewer than one in three think their companies have cyber-specific insurance.
Only 40 percent of respondents feel they have adequate insurance for the cyber risk their organizations face.
When asked the reason for not buying cyber insurance, 22 percent said they did not trust insurers to pay their claims.
When it comes to “off the shelf” security and privacy policies, Mactavish found organizations may be correct in their views that insurers won’t pay.
Based on its analysis of standard cyber insurance wordings, Mactavish found at least eight common flaws in these generic policies. According to the report, potential coverage gaps include:
Like many forms of business insurance, cyber losses and cyber policy wordings can be highly complex, according to Mactavish.
“In an area like Security and Privacy (insurance) that is still being tested, focused negotiations on coverage terms can have long-lasting effects,” says Barry Kramer, senior vice president at Chivaroli & Associates Insurance Services.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.