Beware of cyber gaps
For the past several years, insurance-industry speakers at Timeshare Board Members Association meetings have been urging attendees to buy cyber insurance to protect their resort or enterprise against data breaches, hacking, ransomware, and other computer-related misbehavior. As these events become more common and complex, so does the choice of insurance coverage to protect against them.
â€œCyber, property, crime and general liability policies may all come into play for a cyber-related event,â€ writes Katie Dwyer in a recent Risk & Insurance article.
Cyber policies typically donâ€™t cover bodily injury or damage to physical property. Moreover, as â€œInternet of Thingsâ€ mishaps due to network failures have become more common, a majority of property insurers have excluded such cyber-related events. To fill this gap, your agent should work with an insurer to create coverage for specific situations that otherwise wouldnâ€™t be covered.
Also make sure that somebody is covering extortion, fraudulent requests for transferring funds, sabotage, theft, and other kinds of â€œsocial engineeringâ€ attacks, and the financial impact of business interruption.
The solution to closing such cyber gaps may be a separate endorsement that ties together multiple policies, sorts out the order in which they pay for a loss, and possibly eliminates duplicate coverage for certain events. Ask your agent to explore this concept.