With numerous options to choose from, companies are often perplexed about which cyber insurance policy is the best one.
Indeed, every carrier feels they offer the best cyber insurance policy though that doesn’t mean it is the best one for your company.
Most importantly, the best cyber insurance policy is the one that is aligned with your company’s cyber risks. Just because one policy is the best fit for one company, doesn’t mean it is the best fit for yours.
Every cyber insurance policy has notable differences, and should not be viewed as a one-size fits all policy.
There are key elements to look for when purchasing a cyber insurance policy for your company.
Some questions to consider when assessing the best cyber insurance policy for your company include:
- Does the policy provide the cyber insurance coverages that your company needs?
- In the event of an incident, what amount can you comfortably pay out of pocket until losses are paid? Typically policy retentions/deductibles range from $1,000 to hundreds of thousands of dollars.
- Are the coverage limits sub-limited or do they match the policy aggregate? If your notification costs are sub-limited to a lower limit than the policy aggregate, this means your coverage is sub-limited. It is highly advisable to have your coverage limits match your policy aggregate.
- Does your company provide technology services? This will require a Technology Errors & Omissions policy blended with Cyber Liability.
- Does your company operate in an industry that is a frequent target of cyber attacks which may require certain policy conditions or coverages? For example, if you are a manufacturer, you will require bodily injury and property damage coverage in the event of a cyber attack while a law firm may not.
- What is the ransomware coverage limit being offered? Many carriers have begun to sublimit their ransomware coverage limits, which is not a good idea for your company.
- What is the carrier’s A.M. Best rating? In the event of that Black Swan attack that hasn’t occurred yet, financial stability is a crucial consideration.
- What is the claims-paying ability of the carrier? Indeed, you want to work with a carrier that is known for their claims-paying experience.
- What is the cyber insurance experience of the broker you working with? As a broker with over 10+ years of cyber insurance experience, we have helped many companies find the best cyber insurance policy for their needs.
To sum things up, there are many other elements to consider when purchasing a cyber insurance policy for your company than what is stated above.
Please reach out to us for assistance with obtaining a cyber insurance quote for your company, or for help with an upcoming cyber insurance policy renewal.