Unpacking the Variations: Why Cyber Insurance Policies Differ So Much
Download MP3 Description:
- The Rise of Cyber Liability Insurance: Cyber liability insurance did not exist as a specific line of coverage until recently, and even now, there isn't a standardized policy across carriers.
- Lack of Standardization: Each carrier covers different types of costs, incidents, terms, and exclusions, making it difficult for customers and brokers to fully understand what’s covered.
- Cyber Insurance is Not a Commodity: Unlike car insurance, where there are standardized policies, cyber insurance policies are unique, requiring a careful review to match the client’s needs.
- The Importance of Understanding Your Risks: Companies need to identify their risks to determine what should be covered. While not everything can be covered, it's crucial to protect the risks that could be deal-breakers for the business.
- False Sense of Security: Many businesses, especially small or mid-sized companies, believe they aren't targets for cybercriminals. However, hackers often target smaller businesses because they may lack strong cyber defenses and could be quicker to pay ransom demands.
- Every Company is a Tech Company: Even businesses in non-tech industries like manufacturing or construction rely on technology platforms, such as accounting software, websites, and management systems, making them potential targets for cyberattacks.
- The Impact of Cyber Attacks: Cyberattacks can lead to significant losses, both from damage to your systems and from fines or penalties for breaches of customer data.
- Preventative Measures Are Key: It’s essential to implement protective measures against cyber threats, even if you don’t purchase cyber insurance. Insurers may not cover you if you don’t have proper protections in place.
Takeaway: Understand your cyber risks and put protections in place to prevent cyberattacks from crippling your business, whether you decide to purchase cyber insurance or not.
