Cyber Insurance Explained, From Selection to Post-Purchase
TechTarget, Friday, October 23rd, 2026
LMG Security's Sherri Davidoff explains coverage types, hidden exclusions and contingent business interruption pitfalls in cyber policies.
Using the 2025 AWS outage as an example of systemic risk, Sherri Davidoff explains how cyber insurers have added carefully crafted gaps to policies.
She covers common coverage types and exclusions, such as voided ransom coverage if an insured reveals its policy to attackers, and notes that contingent business interruption may require a written contract with the failed vendor, which fourth-party cloud dependencies often lack.
Waiting periods affect claim value, and pixel-tracking privacy lawsuits have also changed privacy coverage.
She advises buyers to read fine print, seek insurer feedback during applications and expect more scrutiny of AI use.