Get ready to shop for Cyber liability Insurance

Cyber liability insurance policies (also known as “data breach” insurance)  and their  coverage vary dramatically by insurance carriers. For businesses, choosing the right cyber liability insurance policy can be a challenge. Working with a knowledgeable insurance broker who has experience with cyber liability insurance policies can reduce the challenges.

Before you start shopping, though, there are a few things you need to do to get ready:

1) Assess your cyber hygiene

Before applying for cyber liability  insurance, businesses should have policies and procedures in place that show they are protecting and securing their data as well as enforcing their security and privacy policies. While cyber liability insurance can help businesses mitigate risks, it cannot replace good cyber hygiene.

2) Evaluate your needs and priorities

Has your business assessed its risks for a data breach? Depending on your industry, your risk for a data breach may be considered anywhere from minimal to very high.

Has your business conducted a risk assessment? Evaluate, identify and mitigate any gaps in your privacy and security programs prior to applying for a cyber liability insurance policy. The risk assessment can help you assess your needs for cyber liability policy coverage matched to your business vulnerabilities.

3) Predict your data breach

Once you have assessed your risks, you will want to think of as many possible data breach scenarios as you can that could happen to your business. The purpose of this exercise is to arm you with potential data breach scenarios and prepare you to go on a search, with a knowledgeable insurance broker, for a cyber liability policy that fits your needs. While this may seem like a time-consuming process, it could help ensure that you’re covered in the event one of these scenarios happens. The whole purpose of purchasing cyber liability insurance, after all, is to ensure that you are protected from potential risk.

After these three steps, you are ready to compare different cyber liability insurance policies.

*Disclaimer: Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

“The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.”
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A cyber attack or a data breach event can cripple a business of any size. By planning in advance and purchasing a cyber liability insurance or data breach insurance policy, businesses can minimize their risks, costs, and the impact of a cyber attack on their reputation and brand.

To learn how a Cyber Liability Insurance/Data Breach Insurance policy can help you be prepared for a cyber attack, network security incident, or data breach event, please complete the box below. Or call Cyber Data-Risk Managers Pty Ltd 02 8987 1913.

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Evaluating Cyber Liability Insurance Policies

Cyber liability insurance or  also known as data breach insurance have been purchased by businesses to help with response costs. Now, it seems they’re purchasing it out of fear of a lawsuit. With many data breach lawsuits making recent headlines, it’s no surprise. Finding the right policy, though, is an important step in being fully protected.

Once you are ready to shop for cyber liability insurance its important to carefully evaluate the purchase of a the cyber liability insurance policy from a variety of angles. The types of coverage offered by cyber liability insurance policies vary dramatically by insurance carrier, so its good to start by talking with a knowledgeable insurance broker who has experience with cyber liability insurance policies.

When evaluating and considering the purchase of a cyber liability insurance policy, there are several important steps prior to actually investing in the policy:

Determine how much insurance you need and how much risk you can afford to retain. Once the amount of insurance you need is determined, figure out how much you can afford to pay out of pocket before any cyber liability insurance claims may be paid. This will help you determine your retention or deductible.

Review the types of coverage provided. While cyber liability insurance policies are not standard policies, and vary widely, coverage typically falls into three categories: liability, breach response costs, and fines and penalties. Some things to consider are: Does the insurance carrier have experience with your industry? Is there any special cyber liability coverage applicable to your specific industry or business?

Know what triggers the policy. Will your cyber liability insurance coverage be triggered for a stolen or lost unencrypted laptop or USB flash drive? Loss related to the failure to secure data? Loss related to a breach caused by a negligent employee? Data held in the cloud? What happens if you experience a data breach in which public data is exposed?

What types of data are covered? Some carriers specify the types of data covered, while others do not. Some things to consider: How is sensitive data defined in the specific cyber liability policy? Are paper records included?

What response costs and services are covered in the event of a breach? Most carriers offer coverage for breach response costs and breach services. You will want to check to see if the following are covered (at least) in the cyber liability insurance policy on offer: crisis management and breach notifications, credit monitoring, loss of business income, privacy regulatory defense and penalties, computer forensics investigation, and the hiring of a privacy lawyer.

Find out if you can select your own vendors or counsel. Often, businesses prefer to select their own vendor or counsel, especially if they have a pre-existing relationship with these professionals. Find out upfront whether or not you have a choice or must use the vendors and/or counsel selected by the insurer as part of the cyber liability insurance coverage.

Cyber risk is now considered one of the top emerging risks a business faces and data breaches will continue to happen. Cyber liability insurance offers a great solution to responding to a breach and helps offer peace of mind if a lawsuit were to happen.

 

Disclaimer: Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain any additional benefits and exclusions pertaining to your policy.

“The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.”
_____________________________________________________________________________________

A cyber attack/data breach can cripple a business of any size. By planning in advance and purchasing a cyber liability insurance policy, businesses can minimize their risks, costs, and the impact of a cyber attack on their reputation and brand.

To learn how a Cyber/Data Breach Insurance policy can help you be prepared for a cyber attack, network security situation, or data breach event, please complete the box below. Or call  Cyber Data- Risk Managers Pty Ltd 02 8987 1913.

 

 

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