So you’ve had a cyber incident. Maybe you’ve found a vulnerability in your server. Or your login credentials were stolen. Or there’s malware lurking in your system. Either way, your security is compromised and you don’t know just how bad things are. How do you respond? And do you have to tell your insurance company about it? What if they raise your insurance rates?

Most clients have a fender bender mentality when it comes to insurance claims; they don’t want to report seemingly small incidents because they’re afraid their premiums will spike. So they’ll either ignore the problem or try to fix things internally without saying anything to their insurer.

But the more you delay, the bigger a potential breach could get; a minor software bug or security flaw could easily turn into a major data leak. And if you take too long to notify your insurance company, your coverage might not apply, leaving you exposed to costly remediation expenses.

When is the timing “just right?” How do you make sure you don’t lose twice, first by experiencing a privacy breach, and then again by losing your insurance coverage? Here are three common claims scenarios you should avoid—and the best practices for reporting a cyber incident.

Common Claims Scenarios You Should Avoid:

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