So You Think You Have Cyber Insurance? The Breach Is Only The First Incident. The Claim Is The Second.
Security Boulevard, Tuesday, February 24th, 2026
Most companies think of cyber insurance the way they think of fire insurance. They assume that if something catastrophic happens-ransomware, a breach, a fraud scheme-the policy will respond. They believe cyber insurance is a modern form of resilience, a financial backstop for an operational inevitability.
But cyber insurance is not really one product. It is not even one coherent promise. It is an uneasy patchwork of coverages spread across cyber policies, crime policies, commercial general liability policies, professional liability towers, media and publicity policies, directors and officers programs, and sometimes even property insurance.
When the incident happens, the insured often discovers that the question is not simply whether the loss is covered. The question is which insurer will agree that it is their loss to cover.
That is why cyber insurance disputes are now some of the most consequential insurance battles in the country. The breach is only the first incident. The claim is the second. And the denial is often the third.