Cyber Insurance
Today, more than ever, your digital assets are at risk from cyber crime. Protect them.
Why Does a Business Need Cyber Insurance?
If you or your company manages or collects your customer’s personal information, then you know that you have a state and federal obligation based on the laws regarding the loss, theft or the compromising of personal data. This obligation can become very costly over time. Cyber Insurance provides you protection while you seek to understand the vastness and speed in which the Internet operates. The potential cost for a Cyber Breach grows based on the number of customers you have in your database or system. When someone gains access to your online data, it is known as a cyber breach.
As business owners become more aware of the cyber attacks and the regularity in which it happens, they will become more aware of the steps that need to be taken to reduce their risks of Cyber breaches. As the sophistication, speed of the Internet, growth of the Digital Natives and reliance on Internet, Chip and SmartPhone technology, the concern for business owners will heighten and understanding will grow. Cyber is a word which impresses some as the meaning can be quite broad at times; however, the Internet and those who seek to steal your money, contact names and information, move and understand the speed and power of its network.
Do you have any protection? Yes, while you are hard at work learning and gaining more understanding of how to protect yourself, you need to invest in cyber insurance as a means of building a fail safe plan in case you need some back-up protection.
According to Ponemon’s 2014 benchmark study, the average cost for each lost or stolen record containing sensitive and confidential information increased from $188 in the previous year to $201. In a cybersecurity insurance workshop, The Department of Homeland Security (DHS) identified at least 3 ways to prepare for cyber risks:
Risk Acceptance: An example would be setting aside an amount equal to an expected cyber liability event.
Risk mitigation: Using many recommended and tested security practices; companies can prevent or at least lessen the cost posed by cyber liabilities.
Transfer of Risk: A cyber insurance policy can help transfer all or some of your technology-related risks to an insurer.
What Risks Are Covered By Cyber Liability Insurance?
A cyber insurance policy is generally a package of coverage that includes protection for multiple risks. Call and ask a Dickey McCay Insurance professional about any liability coverage below and they will work to get you the answers you need to determine the best protection for your business and company:
Cyber Expense – Extortion Threat
Covers the expense of paying extortionist to unlock your data or website.
Data Breach Expense
Helps pay for potential third-party costs related to identifying and preventing breaches.
Data Breach Liability
Protection from damages suffered by your clients due to unintended release of private information
Security Breach Liability
Protection from damages suffered by your clients due to network security failures
Regulatory Defense Expense
Assists businesses lower the cost of complying with state and/or federal laws regarding breach notifications
Reputational Damage
Find assistance fixing your relationship with clients who may worry about working with your business in the future due to security issues.
Potential Cyber Liability Insurance Requirements
Many insurers will request certain practices are implemented to ensure cyber risks are decreased for both your business and the insurer. Insurers may ask your business to implement the following:
- Identify and Designate a Chief Security Officer to oversee the firms cybersecurity.
- Develop and Implement a cybersecurity policy
- Secure a (free) cybersecurity policy planner for small business
- Install a firewall to your network and maintain remote control access through VPN
- Install anti-virus on all of your business (company’s) machines
- Implement/Apply intrusion detection software to prevent unauthorized access
- Insurance Exclusions to Think About
Cyber Insurance generally does not cover systemic risks. Exclusions include widespread hardware/ software issues and acts of war. For instance, security events like the Y2K bug of 1999 and any act of cyber warfare between nations. Other exclusions will apply and you should check your policy to see which risks are not covered.
In working with business insurance and cyber insurance, please call us today as an experienced Dickey McCay Insurance person will be glad to answer your questions, help you with a quote or assist you in understanding more about Cyber Insurance, so you can have peace of mind. Cyber is real and growing everyday, so Dickey McCay Insurance is committed to working with different insurance carriers to find the right solutions and rates to help protect our business clients. We look forward to talking with you soon.
