Do cyber insurance policies cover lost revenue from hacking-related downtime?

Yes, business interruption coverage is often included in cyber insurance policies. This covers lost revenue due to system outages caused by hacking. Some policies also cover extra expenses incurred to restore operations quickly. However, businesses should confirm whether their policy includes contingent business interruption for supply chain cyber incidents.

How do deductibles and copayments work in private health insurance?

A deductible is the amount you pay before insurance starts covering costs. Copayments are fixed amounts paid per visit or treatment. Higher deductibles often lead to lower premium costs but higher out-of-pocket expenses.

What does a low loss ratio mean?

A low loss ratio (below 50%) indicates that an insurer is paying fewer claims relative to premiums received, which may suggest high profitability but could also mean overpriced policies.

What is subrogation in an insurance claim?

Subrogation is when the insurer recovers claim costs from a third party responsible for the loss. For example, if another driver caused your car accident, your insurer may pay your claim and then seek reimbursement from the at-fault driver’s insurer. This process helps keep insurance costs lower.

What are "retrocessions" in reinsurance?

Retrocession is the practice of a reinsurer purchasing reinsurance from another reinsurer. This allows the original reinsurer to spread risk further and reduce their exposure to large losses, similar to how primary insurers use reinsurance.

What is not covered under hull insurance?

Exclusions often include war risks, nuclear hazards, crew negligence, routine wear and tear, and intentional damage by the owner.

Does homeowners liability insurance cover accidents caused by my pool or trampoline?

Yes, but pools and trampolines are considered high-risk features, and some insurers may require additional safety measures or exclusions. You may need extra liability coverage or an umbrella policy for adequate protection.

How do reinsurance companies make money?

Reinsurers make money by charging primary insurers premiums for assuming risks. They profit if claims are lower than expected or by investing the collected premiums before claims arise.