The Expert Podcast

Wow, cyber attacks are becoming such a big issue that most major corporations are making it an important part of their risk analysis, their business production process, and even their executive staff. The role of CISO, which is an executive that handles risk and insurance, is becoming a much more important role in a company. What's happening is cyber liability insurance is becoming almost an expected part of a responsible company's risk profile, just like you wouldn't go without fire insurance or work comp insurance.

Companies are realizing you cannot have a viable business without having cyber liability coverage. The coverage, in addition to paying if something goes wrong, also plays an important role in prevention. They have active monitoring in most cases, and they also have a response team. So organizations, even if they don't think they're at risk of a cyber attack, are seeing the news; non-tech companies are getting hit all the time. Restaurants, building companies— we had a cement plant that was attacked the other day— and they're realizing that just because you're not a tech company doesn't mean you're not at risk for a cyber attack, and it can really put a crimp in your business. As we've talked about before, a cyber attack might end up with a company having to go out of business. Sixty percent of companies that have a serious cyber attack go out of business within two years, so you want to make sure you have that kind of coverage.

The article goes on to say that standalone cyber insurance policies are becoming the norm. You don't want to get one that's built into your normal general liability policy because it may not have the kind of coverage you want. It may have a limit of maybe $50,000 and doesn't have some of the other protections.

Now, you will be back in your video in just a few seconds. In the meantime, remember that actualhuman.com offers you live one-on-one private video consultations with an expert in this exact subject. We want to listen to your story, we want to hear your questions, we want to give you expert advisement on your options, and tell you what we know about your particular situation.

Now, back to your video. Policies by themselves are pretty substantial, but it puts new responsibility on that executive to evaluate the cyber risk and make it part of the insurance selection process. That's the key. You want to make sure that you determine the levels of coverage, and a well-versed, responsible insurance broker can help you do that. Knowing what other companies do, that executive should be able to influence the board or the executives about the need for coverage. You shouldn't be shut down or silenced because you're telling your board that you need to have insurance coverage. The threats are big, and every week, every month, there's more and more cyber attacks you're reading about in the news, and every company is at risk. So this is becoming a much larger piece of the puzzle for corporations. It affects your sales, it affects your marketing, your business development, and how fast you grow. So don't look at it necessarily as just a pure expense; it's part of your business development to make sure that you're not going to be at a loss.

According to one executive, it's a condition of doing business today. Companies need to meet a certain level of security to qualify for a good policy. So make sure that you're at least applying for an insurance policy on the cyber side, because if you're not approved, that means the insurance company sees you at too high of a risk, and maybe you want to work on some things internally to at least become a better risk for your insurance.

If you have questions, you can reach us on our website riskcoverage.com. We also have consulting available if you'd like to discuss it with a licensed insurance agent. Thank you for watching another video at actualhuman.com and describe.tv. Remember, if you have questions or comments about our videos, put them in the link below. Also, remember that you have availability and access to live one-on-one question and answer consultations with a licensed expert in a number of fields: investigations, insurance, surety bonds, civil court mediation, even things like real estate records research, real estate brokers, and real estate mortgage lenders.

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