Dos
1. Do Assess Your Risk Exposure
Evaluate the nature of your data, digital assets, and cyber risk profile before selecting coverage.
2. Do Compare Policies from Multiple Insurers
Understand what different insurers offer in terms of coverage, premiums, exclusions, and add-ons.
3. Do Check for First-Party and Third-Party Coverage
Ensure your policy covers both personal/business losses (first-party) and legal liabilities (third-party).
4. Do Understand the Inclusions and Exclusions
Read the fine print to know exactly what incidents are covered (e.g., phishing, ransomware, data breach).
5. Do Ask for Add-On Covers if Needed
Opt for additional protection like social media liability, identity theft, or business interruption.
6. Do Verify the Claims Process
Choose insurers with a simple and quick claims process. Ask about the timeline and documents required.
7. Do Check the Insurer’s Network Support
A good cyber insurance policy should offer access to legal experts, IT forensic teams, and data recovery services.
8. Do Review Limits and Sub-Limits
Be aware of policy limits, sub-limits, and deductibles to avoid surprises at the time of claim settlement.
9. Do Maintain Cyber Hygiene
Implement basic cybersecurity practices like antivirus software, firewalls, and regular data backups.
10. Do Review Your Policy Annually
As cyber threats evolve, update your policy coverage accordingly.
Don’ts
1. Don’t Assume All Policies Are the Same
Cyber insurance is not one-size-fits-all. Policies vary significantly in scope and benefits.
2. Don’t Overlook Exclusions
Ignoring exclusions can lead to claim rejections. Know what’s not covered (e.g., pre-existing breaches, negligence).
3. Don’t Underinsure
Don’t opt for low coverage to save premiums—underinsurance could lead to huge out-of-pocket expenses.
4. Don’t Delay Reporting a Cyber Incident
Immediate notification is often a condition for claims. Delay could invalidate your claim.
5. Don’t Share Inaccurate Information
Providing incorrect details during policy purchase can lead to claim denial later.
6. Don’t Skip Reading the Proposal Form
Understand your declarations, warranties, and obligations clearly before signing.
7. Don’t Neglect Employee Awareness (for businesses)
Most cyber breaches stem from human error. Employee training is crucial.
8. Don’t Rely Solely on Insurance
Insurance is a risk transfer tool—not a substitute for good cybersecurity practices.
9. Don’t Forget to Check for Global Coverage
If you operate internationally, make sure your policy provides global or cross-border protection.
10. Don’t Renew Automatically Without Review
Always reassess your needs before renewing the policy, especially if your risk exposure has changed.
