When you voluntarily give something away, you can't tell the insurance company you want them to pay for it. Even if you hand someone the keys to your airplane and they fly away with it without paying, you don’t have a stolen airplane, you likely have a bad debt. This happened to a client of mine.
If a data host ever had a problem with a breach, would it be a cyber problem or a professional liability problem? Think about it this way, there is no way for them to know what you had on the server. All they’re responsible for is valet parking your data.
Can you imagine sending $28,700 to the wrong guy? When a perfect invoice with the correct amount shows up at the right time, it would be hard to know it was from a hacker.
The Department of Financial Services (“DFS”) recently learned of a systemic and aggressive campaign to exploit cybersecurity flaws in public-facing websites to steal Nonpublic Information (NPI).[i] The unauthorized collection of NPI appears to be part of a growing fraud campaign targeting pandemic and unemployment benefits.