Hidden Risks: How Business Insurance Gaps Lead to Costly Losses
Download MP3 Description:
- Topic: Understanding Coverage Gaps in Business Insurance
- Example: A case study from Business Insurance Magazine where Travelers Insurance paid a claim of phishing under a crime policy, not a cyber insurance policy.
- A company lost $600,000 due to fraudulent invoices emailed by an unknown actor to the purchasing manager.
- The claim was paid under a crime policy but was denied under computer fraud coverage.
- The company could have potentially received more money if the claim had been paid under a higher-limit cyber liability insurance policy.
- Key Points:
- Differences between business insurance, liability insurance, crime insurance, and cyber liability insurance.
- Importance of understanding which types of fraud are covered under different policies.
- Ensure there are no gaps in coverage or at least be aware of where the risks lie.
- Cyber liability insurance may fill in coverage gaps or overlap with other business insurance.
- Understand exclusions in your insurance policies and consider adding endorsements or additional policies if necessary.
- Takeaway: As you prepare coverage for your business, be sure to understand the specific protections each policy offers and ensure you're not leaving any gaps that could expose your company to greater risks.
