The Risks of Unapproved Cyber Insurance Claims for Businesses of All Sizes

In today’s dynamic digital landscape, businesses, regardless of their size, face the ever-present risk of cyberattacks and most do not have Cyber Insurance. Ensuring robust cybersecurity is vital, but equally important is the assurance that your cyber insurance claims will be approved when disaster strikes.

In this article, we delve into the dangers and risks associated with insurance companies not approving claims, citing notable cases where this has affected companies of varying sizes and how it affected them.

High-Profile Cases of Insurance Claim Denials

• Case 1: Large Corporation

  • One notable case involves a Fortune 500 company, which suffered a massive data breach. Despite having invested significantly in cybersecurity measures, their insurer denied the claim, citing alleged non-compliance with policy conditions. The financial repercussions and damage to their reputation were devastating.

• Case 2: Mid-Sized Enterprise

  • In a case involving a mid-sized enterprise, the company fell victim to a crippling ransomware attack. After submitting a claim for the substantial ransom paid to restore their systems, they were met with rejection. The insurer argued that the attack was a result of negligence in cybersecurity practices, leaving the company to bear the enormous financial burden alone.

• Case 3: Small Business

  • Even small businesses are not immune. Local small businesses, experienced a prolonged business interruption due to a cyber-incident. Their insurance claim was denied on the grounds of inadequate documentation and failure to meet specific cybersecurity requirements, leaving small businesses struggling to recover and rebuild.

NH 360 Protect Warranty and Cyber Insurance for Businesses of All Sizes

In today’s digital age, businesses, whether large, mid-sized, or small, must take proactive steps to secure their operations against cyber threats.

This includes having comprehensive cybersecurity strategies and cyber insurance policies. Next Horizon offers the NH 360 Protect Warranty and Cyber Insurance as a service to address these needs.

NH 360 Protect Warranty

To qualify for NH 360 Protect Warranty, businesses must meet the essential criteria:

• Maintain industry-standard antivirus or prevention tools.
• Implement multi-factor authentication.
• Ensure data backups are virus-scanned.
• Encrypt PHI/PII data if applicable.
• Perform timely maintenance and updates.
• Conduct continuous security training for employees.
• Verify out-of-cycle wire transfers and invoice changes.

NH 360 Protect Warranty offers several benefits:

• Comprehensive coverage beyond traditional security measures.
• Tailored protection based on your industry and specific risks.
• Financial safeguarding against legal fees, fines, and more.
• Rapid recovery with access to cybersecurity experts.
• Business continuity support.
• Reputation protection.
• Assistance with compliance requirements.

Cyber Insurance (Add-On) Coverage Summary save up to 50% today!

The Cyber Insurance (Add-On) Coverage offered by Next Horizon provides a $3 million policy limit and is designed to cater to various cyber risks. It includes coverage for data breach expenses, business interruption compensation, cyber extortion protection, third-party liability, regulatory fines, and more.

Obtaining both NH 360 Protect Warranty and Cyber Insurance may result in savings of up to 50% in cyber insurance costs, providing comprehensive protection for businesses of all sizes.

Strengthened Resilience Through Enhanced Cyber Insurance

Next Horizon introduces the Fixed Rate Cyber Insurance Policy as an exclusive add-on for NH 360 Protect Warranty participants. This policy offers substantial discounts of up to 50% and comes with flexible coverage options, ensuring comprehensive protection against cyber risks.

Frequently Asked Questions (FAQ) for Businesses

For businesses considering NH 360 Protect and Cyber Insurance, here are some common questions addressed:

• • Is NH 360 Protect considered insurance?

    • NH 360 Protect is not insurance in the traditional sense. It is a Certification Warranty program that helps businesses meet essential cybersecurity requirements. By fulfilling these requirements, you become eligible for cyber insurance coverage as an add-on.

  • Can I switch before my policy is up for renewal?

    • Yes, NH 360 Protect allows for flexibility in switching and doesn’t tie you to waiting for your policy’s renewal date. You can make the transition to NH 360 Protect and Cyber Insurance at any suitable time.

  • What expenses does NH 360 Protect cover?

    • NH 360 Protect primarily focuses on helping you meet cybersecurity requirements. It covers the costs associated with implementing and maintaining these security measures, ensuring your business is well-prepared to defend against cyber threats.

  • How are claims processed?

    • Claims under NH 360 Protect are processed by verifying that you have met the cybersecurity requirements outlined in the program. Once these conditions are met, you can proceed with filing a claim under the Cyber Insurance (Add-On) Coverage, which provides financial support for specific cyber-related expenses.

• How is business interruption loss calculated?

  • The calculation of business interruption loss typically considers factors such as lost revenue, additional expenses incurred during the interruption period, and any extra costs related to resuming normal operations. The exact formula may vary depending on the specifics of your policy.

• What prerequisites must be met?

  • To qualify for NH 360 Protect, you must meet essential cybersecurity criteria, as outlined in the program. These prerequisites include having antivirus protection, implementing multi-factor authentication, conducting regular maintenance, and complying with data privacy and security standards, among others.

• How can I trust NH 360 Protect?

  • NH 360 Protect is designed to help businesses enhance their cybersecurity measures and ensure they meet industry standards. By adhering to these requirements, you can trust that your business is better prepared to defend against cyber threats, and you become eligible for comprehensive Cyber Insurance coverage.

• What if I can’t perform necessary remediation post-incident?

  • NH 360 Protect is primarily focused on preventive measures. In the event of a cyber incident, you should prioritize remediation efforts to recover and minimize damage. Cyber Insurance, as an add-on, can provide financial support for post-incident activities, including recovery and restoration.

• Do I still need cyber insurance?

  • Yes, having cyber insurance is crucial, as it provides financial protection in the aftermath of a cyber incident. While NH 360 Protect helps enhance your cybersecurity posture, cyber insurance acts as a safety net, covering various expenses such as legal fees, data breach recovery, and more.

• How does NH 360 Protect influence my business’ cyber insurance?

  • NH 360 Protect complements cyber insurance by ensuring that your business meets essential cybersecurity requirements. This can lead to cost savings and streamlined eligibility for comprehensive Cyber Insurance coverage, making your business more resilient against cyber threats.

• What happens in a loss if my business has both NH 360 Protect and cyber insurance?

  • If your business experiences a cyber incident and you have both NH 360 Protect and Cyber Insurance, you can file a claim with the insurer to cover eligible expenses. NH 360 Protect helps ensure you meet the necessary cybersecurity requirements to facilitate the claims process.

• Is there a deductible?

  • Yes, some cyber insurance policies may have a deductible. The deductible is the amount that you, as the insured, are responsible for covering before the insurance coverage takes effect. The specific deductible amount can vary depending on the policy terms and your chosen coverage.

Please note that the answers to these questions may vary depending on the specific terms and conditions of your NH 360 Protect and Cyber Insurance policies, so it’s important to review your policy documents and consult with your insurance provider for precise details.

Navigating Cybersecurity and Cyber Insurance: A Unified Approach for Businesses

In today’s digital landscape, a unified strategy is essential. Cybersecurity fortifies defenses, while cyber insurance provides a safety net for financial risks. Together, these two pillars create a resilient ecosystem against the evolving cyber threat landscape.

Don’t wait until it’s too late. Protect your business, your customers, and your future with NH 360 Protect Warranty and Cyber Insurance, designed to meet the needs of businesses of all sizes. Contact Next Horizon today and secure a safer digital future together.