Cyber insurance coverage checklist
Cyber insurance policies can vary widely, making it difficult to understand exactly what is covered. For SERVPRO franchisees, having a clearer view of coverage can help support better decisions and stronger cyber preparedness.
What cyber insurance covers
Cyber insurance helps protect businesses from the financial and operational impact of digital incidents such as data breaches, ransomware, social engineering, and network downtime. Unlike general liability insurance, which covers physical harm and property damage, cyber liability coverage focuses on digital risk.
First-party coverage
Most policies include first-party coverage, which applies directly to the insured business after an incident. This may include data recovery and restoration, business interruption, cyber extortion, breach notification, and crisis management or public relations support.
Third-party coverage
Cyber policies also often include third-party coverage, which applies when a breach affects customers, vendors, or other outside parties and may trigger legal or regulatory action. This can include legal defense, settlements, regulatory fines and penalties, customer lawsuits, and media liability.
Details that deserve a second look
Coverage limits, sublimits, retroactive dates, vendor requirements, subcontractor obligations, and other policy terms can all affect how coverage responds when a loss occurs. It is important to review these details carefully.
Common exclusions
It is also important to understand what cyber insurance may not cover. Common exclusions can include criminal acts by the insured, lost profits, unproven intellectual property theft, and physical hardware damage unless specifically added.
Using the checklist strategically
A checklist helps SERVPRO franchisees ask the right questions, focus coverage discussions on their business’s specific risks, and compare multiple carriers side by side. It can also help identify what has changed since the prior policy term and support stronger conversations at renewal. Read the full blog from ProWriters to learn more.
Want to learn more about cyber insurance solutions for your business?
For more information about the SERVPRO Insurance Program, explore our solutions or contact us at servprofranchiseinsurance@marsh.com.