Cybersecurity Ventures estimates that cybercrime will cost the global economy more than $10.5 trillion a year by 2025! As such, it is critical that businesses take cybersecurity seriously. Part of this is ensuring you have cyber liability insurance in place to protect you should a cyber attack occur.
If you’re looking for a cyber insurance provider but aren’t sure how to choose one, here are 7 questions to ask prospective insurance providers.
7 Questions To Ask A Prospective Cyber Insurance Provider
1. What Is The Cost?
First things first, you need to find out the cost of the insurance. This step is about planning and comparing the costs of different vendors. By doing so, you can make the best choice for your business needs.
A smart way of reducing these types of costs would be to see what cybersecurity measures you can put in place internally to spare a few dollars.
2. What Incidents Will The Insurance Cover?
You will also need to find out exactly what the cyber insurance will cover. The best suggestion would be to get your legal team to go through all the details with a fine-toothed comb.
Most cyber liability policies will cover first-party and third-party damages. However, it’s still best to review the different policies thoroughly so that you can get the coverage your business needs.
3. Is The Provider Knowledgeable About Your Businesses Industry?
Dependent on the industry, there are different rules that may apply as some businesses have very specific data compliance regulations.
As a business, it’s no use going for the most affordable or cheapest option if the provider doesn’t have enough knowledge or experience to cater to your specific requirements. Make sure that your prospective insurance provider understands the specific data handling needs of your business.
4. Are There Specific Incidents That Are Excluded?
Sometimes, there is fine print that will need careful attention. Missing certain details might just land your business in some hot water. So, make sure that you check if there are any incidents that cyber liability insurance won’t cover.
For example, some insurance providers do not cover business practices that pose an avoidable risk. This could include your business’s bring-your-own-device (BYOD) policy. If a breach occurs due to an unencrypted employee device, insurance might not cover it.
So, make sure you clarify exactly what the cyber insurance provider will cover and what it will not cover.
5. Which Audit Or Compliance Obligations Will You Need To Comply With?
There will most likely be a need for regular compliance reviews. These help to keep policies current and relevant.
You will need to check the specifications of what your prospective vendor will require and how much these audits will cost. Also, see if you can request an independent auditor for this as it’s the best way to ensure transparency.
6. What Is The Response Time Once A Breach Occurs?
You will need to act quickly when you identify a breach. Similarly, your insurance provider needs to respond as quickly as possible as well. Make sure you ask each insurance provider about their minimum downtime period. If it’s longer than 24 hours, it may be better to consider a different provider.
7. Can The Provider Modify Coverage Due To The Changing Nature Of Cyber Attacks?
Technology changes at such a rapid pace and your provider of choice will need to take this into account. Agility and adaptability are key in ensuring that when new risks pop up, your provider is able to adjust and adapt.
It will be a hard hit to a business if they’re in the middle of a breach and they find out that their provider doesn’t cover a specific incident because it wasn’t accounted for at the time the policy was drawn up.
To Sum It Up
Cyber insurance is a must-have for businesses. As such, it’s important that you don’t skimp over the process of deciding on a cyber insurance provider. The cost and reputational loss for businesses are just too huge and, in the end, not worth the risk. As a business, take the time to consider your options, weigh them up, and make sure that you cover all bases.
MicroAge is not an insurance expert. We highly recommend speaking with an insurance expert to get appropriate advice. MicroAge can help you gather the information and align your technology to get the best cyber insurance for your business. Contact your local MicroAge today.