There has been no shortage of data breaches making the headlines in recent months and weeks, which is why cyber insurance seems to be getting just as much attention as of late. Rightfully so, once the wallflower child of the insurance industry back in the early 1990s when it was first introduced, cyber insurance has come into its own and has become the wild child of the insurance industry that everyone is talking about. While cyber insurance is still in its infancy, it has evolved enough to be taken seriously and is here to stay. It is being discussed in boardrooms worldwide and many companies are rushing to purchase a cyber insurance policy in fear of the unknown price tag that a data breach often brings with it.
Data breach response costs accumulate very quickly, as Target’s December 2013 data breach response costs were recently reported to be $148M.
Cyber insurance helps tame the significant costs of a data breach by offering coverage for Public Relations, forensics investigations, breach notification mailings, call centers, credit monitoring, regulatory defense, penalties and fines, attorney fees and much more. Frankly, why leave your company’s balance sheet exposed to unfunded data breach costs when cyber insurance can be purchased?
When purchasing a cyber insurance policy, it requires much more than just checking a box of desired coverages, as failing to understand and include the appropriate coverages that are applicable to your company’s specific cyber and data risks could be crippling in the event you’re left holding the bill, or perhaps, your shareholders may begrudgingly have to foot the bill.
While there is no shortage of cyber insurance policies available today, it is important that your company avoids purchasing a policy that could potentially come up short and expose your company to further liability that may not be covered as you thought it was. This is why it is critically important to make sure the cyber insurance policy you are purchasing aligns with your company’s specific cyber and data risks.
Cyber insurance policies vary greatly and when purchasing your company’s cyber insurance policy, it is important to first understand your company’s cyber and data risk exposures so that you can search for a cyber insurance policy that can mitigate those risks.
We advise first time cyber insurance buyers, regardless of size, industry or sector to work with experienced cyber insurance brokers, such as Cyber Data Risk Managers and insurance coverage attorneys so that your company avoids any surprises when your cyber insurance claim arises. After all, you’re buying insurance coverage to cover a cyber attack or data theft/loss/damage claim and you want to make sure your policy will cover you in such events.
Interestingly, we have found that today’s traditional insurance broker is being bypassed when companies are purchasing cyber insurance coverage due to their current broker’s lack of cyber insurance coverage knowledge. Cyber risk requires experience and specialization. Which is why here at Cyber Data Risk Managers, our exclusive focus and specialization is on cyber and data risks.
When it comes to personal health, historically, individuals will most likely seek out a specialist physician in the event of a diagnosis that requires experience and specialization. The same can be said for cyber risk – seek out an experienced cyber insurance broker or cyber insurance coverage attorney who can assist you with your company’s specific cyber and data risks to ensure your cyber attack or data breach response will hold up when its out there in the spotlight.
Whether your company is a high profile brand or small-mid size enterprise, purchasing a cyber insurance policy does not have to be difficult nor should it be which is why your company is advised to work with experts who have experience and specialize in cyber and data risks. Cyber Data Risk Managers is well positioned to assist your company with purchasing the right cyber insurance policy for its cyber and data risk needs.
Contact us today for assistance with your cyber/data breach insurance coverage needs.