In ISP commercial cyber insurance, what applies to the deductible under various insuring agreements?

The correct answer highlights the concept that when multiple agreements within a commercial cyber insurance policy cover a loss, the highest deductible applies. This is a significant aspect of cyber insurance because it illustrates how deductibles work in conjunction with varying coverage sections.

In many cases, a commercial cyber insurance policy consists of different types of coverage, such as for data breaches, business interruption, and cyber extortion, each potentially carrying its own deductible. When a loss occurs that could trigger multiple coverages, there can be a situation where policyholders might think each deductible is independently applicable. However, the policy typically stipulates that only the highest deductible amount will apply. This means that the policyholder only needs to satisfy the largest amount when claiming against the various coverage parts, simplifying the claims process.

The other options do not accurately capture the nuances of how deductibles operate in this context. For instance, the idea that the deductible is the same across all agreements or that it can simply be waived does not accommodate the complexity of different coverage types. Additionally, stipulating that the deductible has no impact on defense expenses overlooks that deductibles often apply to the entirety of a claim, influencing overall financial exposure for the insured. Thus, understanding that the highest deductible applies when multiple agreements cover a