In the event of a cybersecurity breach, any company with a cyber insurance policy should contact their carrier as soon as possible. One of the first steps the cyber insurance carrier will take is to hire a forensics company to investigate the breach. Digital forensics is one of the more expensive aspects of most cyber claims, with costs typically ranging from $20,000 to $50,000.
The failure to understand insurance coverage can create significant gaps in a company’s exposure. Businesses need to make sure they understand the terms of their policies when shopping for coverage to make sure what looks like a good deal isn’t paying a little less money for a lot less coverage. Professional liability policies, also known as errors and omissions coverage, can create some of these issues simply because of the way these policies vary from normal insurance coverage.