With the increasing number of data breaches, ransomware, and cyber-attacks, many organizations have adopted Cyber insurance to protect them in the event of an incident. The marketplace for cyber insurance policies is now very competitive, with offerings by many insurance companies. However, be cautious of companies that have limited claims experience and do not provide the quality of service and risk management that the more experienced and established insurance companies offer.
Here are a few things you should consider about cyber insurance:
Check your coverage
In the past, many policies provided some form of cyber/privacy coverage through liability, crime, and professional policies. With an increase in claim activity, companies are now excluding that coverage under most common policies. Such policies were not designed to anticipate the type of claims now happening nor priced for this exposure. If you already have a cyber insurance policy, find out exactly what coverage you have.
Consider your coverage limits
With an average cost of $206 per breached record, determine how much coverage you’ll need. Target and Home Depot each have spent over $160 million on breach expenses that weren’t covered by insurance. Select the amount of coverage that is most appropriate for your business.
Examine the policy closely
In addition to reviewing the overall limit of liability, look at what is covered in the subsections under the primary limit. Work with your insurance agent to identify and understand the risk exposures to match with the proper subsections.