Asking the Right Questions About Cyber Insurance
RENEWAL SEASON: PART 1
WHY THIS MATTERS
It is the renewal season. Since you are reviewing your commercial insurance policies during the renewal season, now is the perfect time to consider investing in Stand-Alone Cyber Insurance.
Let’s be clear about your current coverage:
- You may not have cyber coverage in your commercial insurance policies.
- You must have comprehensive cyber insurance coverage.
Let’s be clear about your required coverage:
- You need explicit cyber coverage appropriate for your cyber risk tolerance.
- You need to understand what is explicitly covered and excluded in your contract.
Let’s be clear about Stand-Alone Cyber Insurance coverage:
- Your commercial insurance policies cannot provide the same specific, tailor-made cyber and privacy coverage as a Stand-Alone Cyber Insurance policy.
- You must protect your balance sheet from the ongoing increased in cyber and privacy loss frequency and severity.
Silent Cyber in a Nutshell
If you follow cyber insurance market news, you may have heard the term “Silent Cyber.” This term may be daunting to insurance buyers, but it need not be. Silent cyber means that your insurance policy does not affirmatively mention cyber coverage.
Hypothetical Question & Answer (Q & A) Session about Cyber Insurance:
Why should I be concerned if my insurance policies do not mention cyber coverage?
It is not a concern if you do not want cyber insurance coverage. In the world of cyber risk today, that could be an unwise decision.
It is a concern if you want cyber coverage, and your policy does not explicitly, clearly, and unambiguously get cyber coverage.
What steps should I take to consider cyber insurance?
It is the renewal season. Since you are reviewing your commercial insurance policies during the renewal season, now is the perfect time to consider investing in cyber insurance.
What if I already have cyber insurance in my commercial policies?
First, you must confirm what is explicitly covered and excluded in your contract.
Next, you need to ensure that you have cyber coverage appropriate for your cyber risk tolerance.
What am I risking if my commercial insurance policies do not explicitly cover cyber losses?
Your commercial insurance policies cannot provide the same clarity and specificity as a Stand-Alone Cyber Insurance policy tailor-made for your cyber risks.
Due to the increase in cyber and privacy loss frequency and severity, your company’s financial viability could be at risk.
Do I need cyber insurance if I have invested in cybersecurity?
You may have heard the term “holistic cyber risk management.” Holistic cyber risk management means combining cybersecurity measures, cyber risk employee awareness training, and comprehensive Stand Alone Cyber Insurance coverage to tamp down cyber threats.
How do I find the best cyber insurance policy?
Fortunately, you have access to specialty cyber insurance brokers that partner with insurance carriers with high-level expertise in cyber insurance coverage. Cyber Armada Insurance is uniquely qualified to assist you with an assessment of what may constitute “silent cyber” under your current insurance coverage.
The Case for Stand-Alone Cyber Insurance
Your business stands a better chance of surviving the financial fallout from a cyberattack with a robust Stand-Alone Cyber Insurance policy.
Coverage options include:
- Ransom payment demands during a ransomware attack:
- Ransom payments (often in cryptocurrency) agreed with the prior written approval of the insurance company.
- Ransom negotiations with the hackers (regarding the ransom demand with the help of a security expert).
- Business interruption during a cyber event:
- Lost net profits during a shut down during a ransomware attack (after a brief waiting period and during a restoration period).
- Extra expenses, including payroll, during a shutdown of your computer network.
- Data recovery or restoration:
- Recovering or restoring lost programs, software, or data due to damage, disruption, theft, or misuse of your data during a cyber event.
- Incident response during a cyber incident:
- Incident response planning.
- Incident response team pre-selected from a panel of experts.
- Cyber incident response costs incurred.
- Employee cyber risk awareness training:
- Employee training focused on reducing the likelihood of human error by employees being tricked or manipulated into taking action that leads to a ransomware attack, data breach, or funds transfer fraud.
- Your business stands a better chance of not only surviving but thriving after a cyberattack with a dedicated Stand-Alone Cyber Insurance policy suited to your cyber risk tolerance level.
- Cyber Armada Insurance is here 24/7 to help you during the renewal season and beyond.
Reach out to Cyber Armada Insurance to assist you with your Stand-Alone Cyber Insurance needs. We understand the evolving cyber risks and the importance of your investment in appropriate cyber insurance.
Contact Cyber Armada today to explore how your company can solve potential financial losses from a cyberattack. Contact us at 888.727.6232.
Please watch for our future articles on the renewal season 2021.