According to the World Economic Forum, cybercrime and cyber insecurity have emerged as recent additions to the Top 10 list of the most critical global risks anticipated in the coming decade. Cybercrime now shares the stage with other significant challenges such as climate change and involuntary migration.
But buyer, beware: all cyber policies are not created equal. Understanding how your cyber coverage aligns with your risk profile and finances allows you to make necessary adjustments so you do not end up on the wrong side of insurance in the event of loss.
Coverage types can include:
- FIRST-PARTY COVERAGE – This coverage lessens the financial impact on the company that purchased the insurance (the insured). It will cover THE INSURED suffering a data breach or cyberattack.
- THIRD-PARTY COVERAGE – This coverage provides liability protection in case the insured company makes a mistake resulting in a CLIENT suffering a data breach or cyberattack.
A full list of coverages can be discussed with your advisor. This can include:
- Communicating with impacted customers
- Credit monitoring
- Forensic analysis to identify the source of the attack
- Data restoration
- Public relations and reputation management services
- Losses due to ransomware, cyber extortion, etc.
- Expenses for remediation activities
- Loss of income
- Other recovery activities
Request a consultation to discuss your cyber risk needs.
IT Experts who believe the remote work poses an extreme threat to cybersecurity
Average number of days it takes to identify a ransomware attack
in the market for cyber insurance?
Ask the following to avoid pitfalls:
do we have cyber coverage and/or do our current insurance polices cover cyber incident?
Businesses often assume that their existing business continuity policy or property damage policy will cover a cyber incident. This is a dangerous assumption to make because this type of policy might not cover cyber events, which could leave you financially liable should your organization experience breach.
which internal stakeholders do we need to include in the conversation?
Cybersecurity is complex, and so it finding coverage that aligns with your unique digital risk. Your cybersecurity IT leaders, finance department, legal experts, and company leaders all need to communicate and be on the same page about what your cyber risk amounts to and the financial exposure it creates so you can build strategies to mitigate risk.
are we able to meet the requirements for coverage?
Over time, cyber carriers have increased the prerequisite insureds need to meet to obtain coverage. When you apply for coverage, you will need to answer the carrier’s questionnaire so that they know the technology your company uses, the cybersecurity measures you have in place, the coverage you might need, and the limits you can offer.
do we have the right amount of coverage?
To avoid coverage gaps, you need to quantify your cybersecurity risk. Quantifying your risk helps you to determine what you need to do to improve your cybersecurity, and how to best structure a cyber policy for your specific risk profile so that you do not over or under insure.