Ultimately, it is up to your company to decide whether or not it has the right cyber insurance policy. There are several ways you can go about this. Some of these suggestions may sound ludicrous. However, there are companies that choose to enter the wild, wild west at their own risk and you will know which ones they are once you read them.
How to Know Whether Your Company has the Right Cyber Insurance Policy:
- Roll the dice, pick a policy and hope for the best. This can be compared with purchasing a cyber insurance policy online all by yourself with the click of your mouse and without the help of a broker. This is one of those situations that should not to be tried at home or by your company, unless you’re a risk taker and open to potentially footing the bill for an uncovered claim.
- Wait for your claim to happen and see if its covered. We highly discourage the “wait and see” approach. Even with the constant flow of data breaches, there are still some companies who feel a data breach can’t happen to them and will purchase a cheap cyber insurance policy without reviewing what they’re buying. We can’t stress enough how important it is to review your company’s cyber insurance coverages, liability limits, policy conditions and exclusions very carefully before you purchase a policy, and if you already have a cyber insurance policy, dust it off and conduct a cyber insurance policy review right now.
- Work with an experienced cyber insurance specialist broker who has helped many companies select a cyber insurance policy based on the company’s needs. It doesn’t cost more to work with an experienced broker that specializes in cyber insurance. Your company deserves experience, expertise and the leverage an experienced cyber insurance broker can offer.
- When a claim happens, your cyber insurance broker and insurance carrier are there for you and quick to assist your company. It is crucial to understand your insurance carrier’s track record when it comes to claims handling especially since claims are quickly increasing and happening daily. You want to select a carrier that has experience handling data breaches and cyber incidents vs. a carrier or inexperienced broker new to the industry that lacks cyber insurance experience and is primarily interested in increasing their premium volume.