Six Cyber Insurance Pitfalls Security Leaders Must Avoid
🛡️ Enterprises are increasingly buying cyber insurance to mitigate financial fallout from breaches, but policies often contain hidden exclusions and obligations that can leave organizations exposed. Experts identify six common "gotchas": narrow or ambiguous coverage definitions, fine-print exclusions on interruptions and threats, hidden sub-limits, required security controls, the retroactive date trap, and misunderstandings about first-party versus third-party cover. The guidance: read policies closely, engage experienced counsel and brokers, run tabletop exercises to validate coverage, document required controls, and negotiate prior-acts or broader terms where possible.
