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Cyber Attacks: Clarification You Should Know. 

  • 3 min read

A new type of cyber hack may need clarification about where and when to file a claim.

For your cyber insurance loss:

Some cyber hackers, or ransomware fraudsters, are intruding into a network at one point. Then not taking any action for weeks, months, and sometimes even years. What this creates is a problem where your policy may be different from one time to another and this can affect whether or not you have a claims-made policy or an occurrence-made policy. 


If you have a damage or a loss to your business:

You have to file the claim for when that policy covered the loss. If you have a claims-made, you file a claim today it covers when what policy is in place as of today.  An occurrence-made or an occurrence-policy, you file the claim for what policy was in place when the occurrence happened. 

For example, if the occurrence happened two years ago, you have to file it on the policy that was in effect at that point. The reason this is important is because if a hacker breaks into your system and hacks into your network or your devices, and then lays dormant for a few awhile and then executes the event that creates the loss you have to determine which policy is going to cover it. The one that was in effect back then is not in effect now. 


On some occasions, it’s determined by the currency of reporting:

You may be required to report a loss within a certain period. This new type of hack is where they don’t take action right away,  get into your network, snoop around, or gather passwords.  Even gather activity. Hackers can create a new email address for your company and then use those to contact vendors and clients. Even can get banks to divert money to seize funds. Even create a ghost vendor. This type of activity creates some confusion where one insurance policy might say “This is not covered”.  The other policy might say “No we don’t cover it at all”. 

Be aware that this new type of hacking that’s occurring. It might create a requirement to have it specifically addressed in your policy documents. Make sure that when you’re filing a claim you do it based on the appropriate coverage period and not necessarily when the loss is discovered.


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