With our increasing dependence on systems and technology comes a new set of risks that you may not yet have included in your insurance programme. Cyber insurance is designed to respond to the common policy gaps created by “traditional" insurances.
In our recent blog we covered off what the cyber risks are and where "traditional" insurances commonly leave gaps.
But like most insurance policies; no two are created equal. Once you've identified the risks that you face we'd recommend measuring a policy against the below breakdown.
A good cyber insurance policy will address:
- Claims that range from lost cellphones and hardware, through to full scale denial of service attacks and data breaches.
- Liability Exposures- While your current liability insurances may address parts of the risk created, they typically rely on some very traditional triggers such as “negligence” or a “breach of your professional duty”. In reality some of the exposures created by cybercrime, viruses and malware fall outside of these triggers.
- Third Party Costs – This may sound broad but claims made by someone else usually are! A good cyber policy will respond to protection costs involved with notifying clients, monitoring transactions/identities, restoring the data and repairing the reputation of those affected.
- First Party Costs - Data restoration and Network Interruption. These two things are often down the list when you think of claiming under a “cyber policy” but are often the more common source of claims. The interruption to your business caused by the event could be significant and repairing/restoring the data that’s been lost could run up quite a bill with your IT provider.
- Have an experienced “Response Team” - When it comes time to claim you’ll probably want some help. In the same way that insurers have tow trucks and panel beaters for your vehicle, most insurers are now gathering a panel of experienced professionals to form a response team for your claim. A good policy will allow you to access Breach Coordinators, Legal Consultants, Forensic Services (IT and Accounting), Public Relations and Loss adjusters.
We'd recommend taking some time and some advice about what matches your needs when it comes to creating the right cyber insurance policy for your business.