Cyber Insurance Exclusions to Expect in 2026

Cyber insurance has long been viewed as a dependable backstop against digital disruption. But that certainty is eroding. By 2026, organizations will face a cyber insurance market defined more by exclusions and ambiguity than by predictable protection.

In a recent article published by Insurance Thought Leadership, Randy Sadler of CIC Services explains that insurers are tightening underwriting, carving out new categories of non-covered risk, and responding to threats such as AI-driven attacks, zero-day exploits, and IoT vulnerabilities that outpace traditional actuarial models.

For risk managers and brokers, the implication is clear: the gap between perceived coverage and actual coverage is widening, and unmanaged assumptions now represent a material financial exposure.

On paper, 2025 claims data looks steady. Frequency and severity haven’t spiked. Yet insurers are adding exclusions at a rapid rate, but not because of the past. They are reacting to emerging, high-uncertainty risks with catastrophic potential.

Heading into 2026, organizations should expect exclusions that fundamentally redefine what a cyber policy actually covers, including AI-related risks, state-sponsored cyber activity, catastrophic or widespread events, and web tracking and regulatory events.

Managing exclusions is no longer a passive task. Organizations must actively align their risk posture with their policy language. As traditional policies exclude more high-severity risks, organizations are turning to complementary financial tools like captive insurance.

Read the full article here to see how companies can transform evolving coverage gaps into opportunities for smarter risk planning. Building resilience today is the surest way to withstand tomorrow’s uncertainties.