Buying cyber insurance is not a one-size-fits-all process. To ensure your business has sufficient cyber coverage, it is critical to assess your needs and consider your specific risks. The following are some common elements of cyber insurance policies to consider when building optimal coverage for your business:
- Limits and sublimits—Neckerman Insurance Services can assist you in determining appropriate limits by utilizing industry benchmarking data and projected breach costs. From there, we can examine your sublimits, which don’t provide extra coverage, but set a maximum to cover a specific loss.
- Retroactive coverage—Breaches can go undiscovered for years. For protection from unidentified cyber incidents, ask for a retroactive date that is earlier than the policy’s inception date.
- Exclusions—Common cyber policy exclusions, such as outdated software, unencrypted mobile devices and penalties from credit issuers, can adversely impact coverage. Understand your policy exclusions before committing.
- Panel provisions—Many insurance companies require policyholders to use preapproved investigators, consultants and legal professionals in the event of a cyber breach. If you have a preferred team of experts, make sure your preferred policy allows you to work with them before signing.
- Consent provisions—Some cyber policies contain consent provisions that require obtaining the insurer’s consent before incurring certain expenses related to cyber claims. If prior consent provisions are included in the policy and cannot be removed, policyholders can change them to ensure that the carrier’s consent cannot be unreasonably withheld.
- Vendor acts and omissions—Most organizations use third-party vendors to process or store a portion of their data. While they make it easier to do business, they also represent a potential exposure. It is critical that your business’s cyber liability policy covers claims that result from breaches caused by your vendors.
Cyber insurance is continually evolving alongside emerging cyber threats. Contact Neckerman Insurance Services to help proactively assess your risks and ensure that your insurance coverage is in line with your specific business practices and exposures.
© 2017 Zywave, Inc.