When it comes to making a cyber insurance claim, every little detail can play a part in whether or not that claim is accepted or denied. For instance, insureds must effectively prove that the cyber incident clearly interrupted business and resulted in a loss of profit. Did the cyber incident also directly lead to a loss in customer reputation as well? These nontangible loses make cyber business interruption claims very difficult to analyze compared to damage to physical assets in property casualty claims. Not to mention, it is crucial that insureds prove they have taken the appropriate security measures before the breach occurred and responded to the breach in the best way possible to mitigate losses. If not, the company may be on its own when it comes to repairing the damages from a cyber-attack.
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