The Cyber Insurance Question: Additional Protection Beyond Prevention
You do everything you can to have good cyber hygiene. You prioritize key services, establish an incident response plan, implement controls to protect data, perform periodic monitoring, and manage risks from outside suppliers.
But, despite all your best efforts, there is still a chance that a security breach will happen to your organization. A Ponemon Institute study estimates as high as a 1 in 4 chance of a cyberattack – more than double the chance of catching the flu during winter.
Practicing good cyber hygiene, encrypting data, educating employees on social engineering, and eliminating new routes for hackers to exploit help lessen the threat. But what happens if a security breach still happens?
Regardless of whether your company provides cyber-related services or, more simply, you use data and technology to run your business, the question of cyber insurance becomes critical as part of breach response. This article will consider best practices for cyber insurance in two scenarios:
With the increasing frequency of high impact and publicly disclosed cyberattacks and data breaches in the world, more executives are asking themselves if they are at risk and what can be done to protect their organization against loss.
What to assess if you don’t have cyber insurance
If you haven’t explored a cyber-related insurance policy before, you’ll need to ask yourself a few questions:
Determining your organization’s cyber risk profile and analyzing the best coverage to mitigate risk and loss takes a very specialized skill set and up-to-date knowledge of the insurance products available. This makes finding the right experts essential. Don’t assume the resources who advise your organization on other insurance products will be the right resources for your cyber risk profile.
What to assess if you already have cyber insurance
If your company does have coverage, it is a good idea to review the policy terms and coverage before you renew the policy. Here are some questions to ask as you review:
While having some cyber security coverage is common, the cyber insurance industry has developed rapidly. Many unique coverages now exist that allow businesses of varying size and complexity best match existing organizational risks. Purchasing a tailored cyber policy after careful analysis of your organization’s risks may provide vital protection for your organization going forward.
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