Cyber liability insurance – or cyber insurance – is a relatively new type of insurance policy that gained traction in the 90s, when cyber issues grew rampant at an exponential rate. Still, only 40% of SMEs have standalone cyber insurance coverage despite its many benefits.
As expected, cyber insurance policies have come a long way, with varying terms and coverage not too far different from a traditional insurance policy. A meticulous examination of the policy’s clauses, inclusions, and exclusions remains an important part of the adoption process enabling businesses to set realistic expectations, crack the technical jargon, and boost confidence in handling cyber incidents.
Optimizing Your Cyber Liability Insurance Coverage
Cyber liability insurance coverage provides financial remediation for damaged systems, legal fines and fees, and other costs induced by a successful cybersecurity incident. However, seeing the most out of your policy demands a thorough understanding of cyber liability insurance and the right processes for due claims.
Document Security Measures and Procedures
Essentially, cyber liability insurance adds an extra layer of protection for businesses. For companies relying on complex systems and operations, keeping the necessary documentation highlights the foundational level practices and procedures for responding to cybersecurity incidents.
In times of crises, insurance providers will ask for comprehensive documentation of cybersecurity measures, policies, and incident response procedures that later become:
- Vital evidence of breaches and attacks during the claims process
- Crucial determinants of the underwriter’s evaluation of the company’s cybersecurity risk profile
- A key determinant for monthly premiums paid out to the insurance provider
Complete and accurate documentation is the hallmark of a successful insurance relationship. Losses, too, should be well-documented; including financial losses related to business interruption, data and system restoration, and other vital expenses that support your claim.
High Precision in Application
Cyber liability insurance varies by provider, with most uptaking liability for unforeseen issues that directly affect the company and its operations (first-party coverage).
For cyber threats facing the company’s customers or users, a third-party insurance policy can help cover such costs under different terms and conditions.
Business owners should have a crystal clear understanding of the policy and its contents before signing up. Accuracy is paramount in the policy’s application, where detailed and precise information about the company’s cybersecurity measures, its response strategies, risk management procedures, and an account of past incidents provide grounds for more comprehensive cyber liability insurance.
Timely Incident Reporting and Full Cooperation with the Insurer’s Investigations
Cybersecurity incidents are sensitive in nature, and must be reported upon discovery to mitigate the risks and stop the spread to the ecosystem. Generally, cyber incidents must be reported between 24 and 72 hours.
Swift notification of incidents to the insurance company speeds up the claims process, allowing for a prompt investigation – a critical aspect of a successful response strategy. Rather than looking for reasons to avoid independent audits by insurance providers, businesses should embrace the insurer’s investigation as an opportunity to seal the gaps left behind by exposed vulnerabilities.
Provide the requested information, interviews, and access to systems and records to further hasten the payout process.
Regular Policy Review
Shifting priorities, goals, and objectives is nothing new to the business world. Periodically, cyber insurance policies should stand scrutiny and realignment with the company’s recalibrated goals.
Study emerging needs and push for continuous improvement of your cybersecurity measures based on industry standards. Regular assessments to identify and mitigate vulnerabilities showcase a proactive approach, potentially influencing positive claim outcomes.
Ramping Up for a Successful Cyber Liability Insurance Payout
Today, the biggest question about cyber incidents is more about the when than if. Foregoing cyber liability insurance attracts unforeseen challenges – for businesses with a risk intolerance, obtaining cyber insurance is vital.
Still, maneuvering the claims process to a successful payout is a riddled process, and that’s where we come in. BoomTech’s seasoned IT experts specialize in cybersecurity, hardware and software diagnostics, to network and infrastructure security – the very ingredients required for favorable cyber liability insurance terms.
With extensive experience on our belt, we’ve successfully guided businesses through optimizing coverage and effectively navigating the claims process, navigating through the complexities and myths surrounding cyber liability insurance. Schedule a no-obligation consultation to optimize your cyber insurance coverage and fortify your business against cyber incidents effectively.
Conclusion
Although cyber liability insurance is yet another added cost of business, its returns are well worth the spend considering the risks your business is exposed to without it. Need to talk to a cyber liability expert? Don’t hesitate to get in touch with us today!
Categories
Hear from Philipp Baumann, owner and founder of BoomTech:
