Skip to main content

What to consider when investing in cyber insurance

What to consider when investing in cyber insurance

As a business, you are probably aware of the term, cyber insurance. With the cybercrime rates rising consistently, cyber insurance is increasingly becoming a necessity for survival. Here are a few things to consider before you sign up with a cyber insurance service provider.

Risk analysis

First, perform an internal risk analysis. Research to understand what kind of cybercrimes are most rampant in your industry and ensure your insurance policy covers those for sure. Like we discussed before, the most basic of cyber insurance covers data breach and associated costs, but you definitely want more than just that.

What is the scope of your policy

Be clear about the scope of your policy before you sign the dotted line. Remember that cyber insurance functions on the same principles and policies as like any other insurance, which means there will be deductibles, waiting periods and exclusions. Be sure to ask your insurance service provider about them. You don’t want to find out you weren’t covered by insurance until after the attack, at the time of claim. Here are a few things to ask your insurance company in this regard.

  1. Does the policy cover you if a breach happens via your sub-contractor or vendor and makes you liable to your clients? If your cyber insurance doesn’t cover those, then make sure your vendors and sub-contractors have cyber insurance to cover you or sign some kind of an indemnity contract with them so you are covered in the event of such incidents.
  2. In case of an action byyour employee causing the breach, such as clicking on a fraudulent link or sharing data accidentally to a dubious email ID, will you still be covered?
  3. Ask your insurance provider to clearly spell out any deductibles, exclusions and window periods that may exist
  4. Check with your insurance provider on what would be your liabilities as the insured. For example, there may be rules regarding anti-virus measures, data safety and security measures, IT training, timely data backups and IT audits, etc., that you may have to follow in order to be eligible to be covered under the insurance in the event of a breach
Before you sign up, do your research thoroughly, get proposals from multiple insurance service providers and opt for a policy that covers your needs the most and the best. Sometimes, service providers may be willing to make additions or modifications to an existing policy to meet your exact requirements, which may work best for you.

Comments

Popular posts from this blog

Social media at work what could go wrong?

Social media at work...what could go wrong? As a business, there is no doubt today that you need to make your presence felt on major social media platforms such as Facebook, Twitter, Instagram and LinkedIn. But social media also exposes you to cybercriminals. In this post we talk about the steps you can take to ensure your social media account doesn’t become a gateway for cybercriminals to access your data. Make someone accountable The first step to a successful and safe social media experience as a company is to make someone in your organization accountable for it. Designate a social media manager who is responsible for maintaining your company’s social media accounts. This person should oversee everything--from the posts and pictures in your company account to approving/disapproving ‘Friend’/’Follow’ requests. Train your employees Of course you should train your employees who handle your official social media accounts about the security threats and how they need to steer clear of the

Understanding Managed Services and How They Benefit SMBs

Understanding Managed Services and How They Benefit SMBs Small to medium sized businesses (SMBs) receive a lot of calls each day from slick sales people peddling the next technology trend that's going to save them money and revolutionize how they do business. They're all too quick to caution that if you don't listen to them, you'll fall behind the times, and eventually be swimming in a sea of debt and out of business. No doubt you've heard, or you've at least read about, the benefits of managed services. Managed services refer to clearly defined outsourced IT services delivered to you at predictable costs. You know the exact IT services you'll be getting and what you'll pay for them. There is no surprise sky-high bill for services rendered. So are solicitation calls that pertain to managed services worth listening to? We think so. Then again, we're in the managed services industry. There may be a bit of a bias here. How Managed Service Providers Work

Do your homework: 3 things to do when looking for an MSP

Do your homework: 3 things to do when looking for an MSP Thinking of hiring a Managed Service Provider, but not sure how to go about it? Here are a few things to do before you zero in on one. Figure out what you have already The first step in a good plan is to figure out where you stand currently. Before you talk to an MSP, conduct an audit of your IT infrastructure to decide what you have currently. List all your hardware and software. When performing this IT audit, don’t forget other technologies that you are using, such as biometric access systems, CCTV systems and even telephone systems. You may think they are irrelevant as they are not directly related to your IT infrastructure, but, in the near future you may want them all to be connected to one another, and so, including them in the audit and inventory right now is a good idea. Figure out what you need This is the next step. After you determine what you already have, the next step is to figure out what you need. What do you wan