Data breaches dominated the daily headlines in 2016. Whether your company was one of the unfortunate ones that made the headlines or one of the lucky ones that fought off an attack, what’s certain is that data breaches are here to stay. Regardless of your company’s size, or industry, your company is an open target.
With a new year upon us, many company 2017 budgets include purchasing cyber insurance. Nonetheless, it should be noted by all companies purchasing coverage for the first time, or renewing an existing policy, that cyber insurance is not a panacea for cyber risk, nor is it a replacement for cyber and data security or proper cyber security hygiene. Companies must be prepared ahead of time before purchasing a cyber insurance policy.
Imagine showing up to run a marathon without any preparation (lack of security and privacy policies and procedures) or the proper gear (security systems). While an athlete may get lucky and make it to the end, the after effects will most likely be harsh. If you apply that same thinking to cyber insurance, the company that purchases a cyber insurance policy for the first time that has not prepared nor was prepared at the time the coverage was purchased further increases their chances of suffering harsh effects at the time an incident arises and a claim is submitted. It is 2017, why take that chance?
An experienced cyber insurance broker should be a top priority on your company’s 2017 to-do list and be mandatory when your company is purchasing cyber insurance for the first time and/or renewing an existing cyber insurance policy. Cyber insurance is quite complex. Today, it is important for companies to work with an insurance broker that has extensive cyber insurance experience, expertise and focused cyber insurance specialization. These are crucial components that are needed due to the complexities and the myriad of cyber insurance policies that are available today.
An experienced cyber insurance broker can help serve as your company’s coach from the start and to (and through) the road to recovery. Unlike a marathon, the cyber insurance finish line is the time in which an incident occurs, and a claim is submitted. Companies must be prepared ahead of time and ready to cross their finish line. Advance preparation is key. Indeed, once a claim is submitted, the road to recovery is in the hands of the insurance carrier, who will have many questions about how prepared the company was along the way to the finish line and how prepared the company is at the finish line.
Think of a marathon checkpoint and how it can be related to a security check. If there were steps missed by the company (negligence, lack of policies and procedures, etc, etc) and the company lacked the gear they stated they would use (the security measures indicated in the cyber insurance application) or perhaps the company purchased the wrong cyber insurance policy, the road to recovery will be bright for some and doom and gloom for others. It is worth asking again: It is 2017, why take that chance?
For help with your company’s cyber insurance, please complete our cyber insurance quote request form or give us a call at 855.CUT.RISK (288-7475).