The Expert Podcast

Cyber liability is really heating up in the commercial space and there's some hidden risks that even Insurance Brokers are sometimes overlooking and this article from uh the insurance business publication is talking about what that risk is and many times you have a cyber policy or cyber defense um procedures or policies but it overlooks one thing and that is third-party liability and that's a two-way street.

Third party liability could be that another vendor customer client or colleague that you're doing business with they have some kind of cyber risk and once they're hacked or they have ransomware it affects your network because there's a connection another way it could flow is if you have cyber risk and you're hacked or you have uh some type of an event it affects a customer or client or vendor they could come to you for Recovery of those losses.

So you want to make sure when you're looking at Cyber policies that you make sure that third- party risk in both directions is being considered if you decide you don't want to add that risk coverage to your policy that's fine but just make sure you understand what type of third-party risk is included with your policy because if let's say for example you have a loss in your business because of a vendor was hacked and the hacker got through that vendor into your system you may have an exclusion of coverage if your policy doesn't cover cover a third party.

You may also want to look at ensuring that any vendors or clients you're doing business with have a cyber liability policy that covers a third party this may be a clause you include in any new contracts that you do to make sure that you have coverage in the event that there's a breach that doesn't happen to you but it happens to somebody else you don't want to be affected by that by the same token you want to make sure that you your video will be back in 8 seconds.

In the meantime remember you have access to live oneon-one consultation undivided attention of a licensed certified expert in this subject and many others we want to listen to your story we want to hear your questions and give you expert advisement of your options we want to tell you what we know about your situation and what options you have now back to your video.

Your coverages extend to other third parties because let's say for example you get hacked and your system goes down and you have some losses your policy pays for that let's say but what if a third party also has damages that maybe are even more damages than what you had because of your event if your policy doesn't cover that it kind of defeats the purpose of it so just make sure you're you're considering that.

There are policies that have um exclusions for that coverage or that include it you just want to make sure you understand what the those are and make the appropriate decision you might decide hey it's better to go with a cheaper policy and not have that third party risk than paying the extra premium and in the article here's exactly how it describes it one of cyber biggest risk may be overlooked thirdparty risk key factor in cyber insurance claims so the insurance companies are seeing this as a key factor for financial losses in 2004.

Increased Reliance on interconnected systems and software vendors contribute to the growing impact good example is the cdk loss that affected tens of thousands of car dealerships none of them were hacked directly but their vendor cdk that provides Inventory management parts Management Service uh Drive operations was down for a week or two so they couldn't operate many parts of a car dealership for several weeks and that was something that happened to a third party.

So you may want to look at third party coverages in your policy make sure your key vendors have that so you're not left out in the cold if you do have a loss if you have more questions about uh cyber defense or cyber liability you can click the link below we can also arrange for consultation if you'd like to discuss different options with a cyber security expert thank you for watching another video at actual human.com and describe. TV.

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