Technology allows businesses to operate efficiently. So long as technological solutions function as intended, they can help businesses provide a wide range of services for customers or ensure the safety of workers. Unfortunately, technological systems can sometimes fail.
Those failures may lead to injuries, unintentional contract breaches or major disruptions to company operations. For example, the San Diego Airport recently experienced multiple days of disrupted flight schedules following the international CrowdStrike incident. Many large companies suffered major technological disruptions after an update of specialized software.
Most of those businesses are subject to contracts limiting the financial compensation available only to the fees paid to CrowdStrike. They may have had losses that were many times higher than the fees they paid to the business previously. In such scenarios or situations involving hacking by outside parties, cyber insurance can be a crucial form of protection.
What is Cyber Insurance?
Cyber insurance helps protect companies from operational disruptions related to technological systems. A scenario like a software outage that temporarily halts company operations might warrant a cyber insurance claim. Businesses may also use their cyber insurance after hackers target the business using ransomware or other tactics.
Cyber insurance can help cover business expenses when there is an unexpected interruption in company operations. Cyber insurance can also help cover losses related to canceling client services or failing to deliver products to customers. Unfortunately, large cyber insurance claims can be difficult for businesses to navigate.
Complex Claims May Require Support
Insurance providers have an obligation to uphold the policies that they issue in good faith. However, many insurance companies facing large claims go to great lengths to minimize what they pay to policyholders.
In a complex cyber insurance claim scenario, a business may need extensive documentation of contract fees and lost revenue caused by an interruption in business operations. It is sometimes necessary to obtain support when pursuing a claim. Particularly when insurance providers deny valid claims, delay payout on claims or offer inappropriate settlements, policyholders may need help getting the coverage they deserve.
Securing the right support early in a cyber insurance claim can improve the chances of a business obtaining timely and thorough compensation in accordance with the terms of a policy.