Do You Need Cyber Security Insurance?

Life insurance.

Car insurance.

Home insurance.

These are all “no-brainers” right?

But what about Cyber-security insurance?

Are you prepared if you face a data breach?

Are you ready to pay-out those whose information may be compromised if your systems are hacked?

Keep reading to learn more about data breach protection and how it could benefit you.

What Is Cyber Security Insurance?

Cyber insurance, cyber risk insurance or cyber liability insurance coverage are different names for the same thing.

This insurance will assist your organization in covering costs associated with cyber-security breaches and other related cyber-security issues.

When creating a risk management plan, organizations will determine on how to handle potential risks they face, by either accepting, avoiding, controlling or transferring them.

Cyber Insurance is one method to transfer risk by offsetting costs associated with response and recovery after a cyber-security related breach occurs.

Choosing A Cyber Security Insurance Policy

Many well-known insurance companies offer cyber-insurance policies.

If you have an insurance provider you know and trust for your other policies, start there and see if they have cyber-insurance suitable for your needs.

When researching policies, be certain to be very clear about what is covered and what is not.

Find out about special circumstances and any limits as well.

Some questions to ask include:

  • Is the coverage standalone, or is it an extension on an existing policy?
    (Often times, a standalone policy will be more comprehensive.)
  • Can the policy be customized to my organization?
  • What are the deductibles?
  • What sorts of breaches or cyber-attacks are covered?
  • Is there a time-frame to which the coverage applies?

What Does Cyber Security Insurance Cover?

There are 4 key areas cyber-security insurance can help you with.

Let’s take a look at what they are:

1. Investigation

In the event of a security breach, often times a third-party company will need to be brought in, to discover the causes of the breach.

A forensics investigation will determine what occurred, how to fix it, and how to prevent it from happening again.

This insurance will help with costs associated with this investigation.

2. Business Losses

The terms of a cyber-insurance policy might be similar to those of policies that cover errors due to negligence or other similar reasons.

Business losses can also include losses due to network downtime, business interruption, data recovery and damage to reputation.

3. Privacy and Notification

In most jurisdictions if a company has a data breach which affects their customers or clients it is required they be notified.

Additionally, customers whose information has been breached may now require credit monitoring to guard against identity theft.

This coverage can help with these expenses.

4. Lawsuits and extortion

If a company is faced with cyber-extortion, for instance after ransomware is installed on their system, cyber-insurance can help cover these costs.

If you have this type of insurance be sure to read your policy carefully, as sometimes disclosing you have this coverage can make it null and void, as it makes you a target for cyber-thieves who know their demands will be paid for with the insurance.

What Does Cyber Security Insurance NOT Cover?

When choosing Cyber Security Insurance, it is important to read the fine print and understand what is, and is not, covered.

For example, the way the policy defines a breach, or fraud, could make the difference in being covered or not covered should an incident occur.

Read your policy carefully and thoroughly to understand what is, and more importantly what is NOT covered.

What Kind Of Cyber Security Insurance Do I Need?

Factors such as the size of your company, the type of information you are storing and the industry you work in will determine what type of cyber-insurance you will need.

For some, a rider on their existing policy may be sufficient, and for others an entire separate policy may be required.

If you’re on the hunt for a policy, and are overwhelmed by the choices on-offer, an insurance broker might be beneficial to help navigate your options.

When looking for a broker, the relationship between your Chief Information Security Officer (CISO) and the broker is important.

Ensure the broker has your best interest, and not that of their partners, in mind.

Look at the services being offered and their ability in the arena of cyber security.

The right broker can help you navigate the finer points of the options available, so long as they are experienced and honest.

Contact 1st Secure IT

Are you worried about a data breach?

Do you want to beef-up cyber security so you can be eligible for lower cyber-insurance premiums?

Are you worried about maintaining compliance with the requirements for your existing plan, or need help looking at your cyber-security options?

1st Secure IT can help. Contact us today for a cyber-security consultation.

1st Secure IT


4613 N. University Drive #323
Coral Springs Florida
33067
(866) 735-3369
https://goo.gl/maps/heFDsxSfr5M2


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Monday, 19 August 2019

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