Considering Cybersecurity Against Breaches
By 2027, global spending to secure data in cyberspace may reach $10 billion. Despite the tremendous resources poured into keeping hackers out, daily headlines continue to remind us that even government agencies aren’t immune to breaches.
A cyber insurance policy helps your organization pay for the costs to recover from data breaches and other cyber-attacks. This product evolved from errors and omissions (E&O) insurance in 2005. PWC estimates that by 2020 premiums will reach $7.5 billion. Almost a third of U.S. businesses have added this coverage to their business insurance plans.
What Does Cyber Insurance Cover?
With so many businesses signing up for cyber insurance, you may be feeling left behind. Before you discuss adding it your commercial or BOP policy, it’s important to understand what’s covered.
If you are attacked by cybercriminals, this coverage pays for expenses related to recovery costs. This insurance is still relatively new, so coverage varies greatly from provider to provider. Here are some of the most common covered perils:
After a cyberattack, the first task is figuring out how to repair the damage to your network. This involves hiring a forensics team, to fix the damage and determine how to prevent a future breach. Investigations may include a third-party security firm and the appropriate authorities, such as the FBI.
Your policy may include monetary losses due to network downtime, data loss recovery and business interruption. Business losses typically include the costs of managing the crisis.
Data breach notifications are required by several federal and state laws. You may need to work with the authorities to provide credit monitoring to any customer whose personal data has been compromised.
Lawsuits and cyber ransom:
This pay the legal expenses related to privacy and regulatory implications. Some policies pay the cost demanded by ransomware perpetrators to regain access to your data.
Tips for Buying Cyber Insurance Policy
Here are five considerations when buying a cyber insurance policy:
Examine Your Total Risk:
Have a firm grasp of your business risks. Document the type and scope of data records stored on your network. You may also need to include data stored by vendors or offsite. This assessment empowers you to make better-informed decisions on the type of insurance to purchase.
Consider Your Coverage Needs:
Before purchasing a new policy, your business should examine its existing policies to determine what type of cyber risks may already be covered. Commercial general liability policies may already provide coverage for things like privacy and data breaches. Other policies commonly held by businesses such as commercial property, Directors & Officers, and Errors & Omissions, may also offer coverage.
Compare Cyber Insurance Options:
Work with more than one insurance provider to compare limits, coverage and exclusions. Each policy should cover the following elements:
- Costs of investigations, such as administrative and regulatory expenses.
- Fines, penalties and ransomware demands.
- Crisis management costs related to a data breach. This includes client notifications and credit monitoring required by law.
Consider Other Costs:
Many data breaches occur on digital networks. Data can be stolen in the form of hard copies in a briefcase or someone’s home office. Your cybersecurity policy and insurance coverage should take these risks into account.
Consider the Cloud:
Some cyber insurance limits coverage to the insured’s acts and omissions. This is a problem for the growing number of companies that store their data on the cloud. Given the move toward this technology, you should find a provider that covers cloud data storage.
Each business will have its own list of concerns and questions when it comes to whether to buy a cyber insurance policy. There’s no definitive answer, but the trend seems to be a rising awareness that it’s not enough to focus on identifying and blocking hacking attempts. Some breaches are the result of months of preparation that goes undetected. You can add the latest security bells and whistles to your digital home. But having an insurance policy to protect you from determined thieves is also a smart choice.
Clarity is proud to have been Providing Cloud Infrastructure Services to North America for many years. With the addition of our Dotmantech division and an extensive team of developers, we will continue to surpass expectations.
Call Clarity at 800-354-4160 today or email us at [email protected] . We are partnered internationally around the globe and we are open seven days a week 8:30 AM to 5:00 PM EST/EDT. http://claritytg.com/ and https://dotmantech.com .