Insurance is not covering everything you think it is. You should be worried by that statement. Very worried. Most insurance policies have an exception clause specifically exempting War and other items, specifically, war, invasion, acts of foreign enemies, hostilities whether war declared or not, civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any government or public or local authority.
What a mouthful.
And in terms of cyber attacks, it means the insurance company doesn’t have to pay you if someone hacks your computers and steals all your data. An act that can cost you your entire business. Cyber attacks can be classed as terrorist activities with little or no effort, and many originate on foreign soil.
For a thorough account of how serious this can be for businesses and individuals, check out this blog entry.
So if your policy excludes any of the above, you need to do one of two things: 1) find a better insurer, or 2) make sure you are prepared for the possibility of having to defend your company against whatever lawsuits you may be at risk for from a computer hacking activity. Your best insurance is due diligence to security needs.
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