Having Cybersecurity Insurance does not guarantee payout in the event of a claim. In fact, a cybersecurity claim could be denied from the outset if your firm is out of compliance. Inadequate cybersecurity leaves you vulnerable twice; initially for a breach then denial of a claim from an insurance policy you thought would protect you.
Insurers can reject claims for multiple reasons, be sure that failure to maintain cybersecurity standards is not one of them. Did you attest to having cyber protection on taking a cyber insurance policy? Can you evidence it?
Mitigate risk with a cyber program and select the right insurance coverage. Cyber insurance policies and costs vary depending on risk factors, you may select a range of coverage from $1M to Tens of Millions. Your policy should cover breaches from social engineering, phishing, virus, ransomware, wrongly transferred money, etc. and expenses like forensics, legal counsel, and regulatory fines. Be sure to review terms and exclusions.
To plan for a potential cyber insurance claim, document all known details of a breach and report on time according to notification requirements specific to your policy. Consider Risk Assessment for the advantage of discovering your vulnerabilities before anyone else: http://ow.ly/vbwA50zXPQB