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Posted on 26/10/2016 by Charlotte

As long as there have been businesses, there have been insurances. In today’s market being insured is an absolute essential, but the degree of coverage and type of insurance can change depending on your field. But now that cybercrime and digital theft are becoming such a prevalent problem, a new type of insurance has swaggered onto the block to help out smaller businesses. Cyber liability (or cyber security) insurance aims to combat the potentially devastating effects of a cyber-attack.

 

What is Cyber Insurance?

Cyber insurance is a type of insurance specifically designed to cover consumers of technology services of products. Just like any other type of insurance, cyber liability or security insurance is all about making sure you’re not out of pocket if your company is breached and data stolen. It’s like public liability insurance, but for your digital data. Most cyber insurances will cover a business’ lability for a data breach in which the companies’ customer’s personal information (like bank account details, addresses or card numbers) are exposed or stolen by a hacker or other criminal who has gained access via electronic means. The penalties and damages from such an attack can be enormous and potentially financially crippling, which is why more and more businesses are opting to pay a premium for insurance instead. If you don’t choose to take out cyber insurance, you are liable for any damages, law suit pay-outs and other financial issues that arise form a cyber-attack. Long story short, if you work with data, it’s a must have insurance. But you do need to be careful about which type you buy and make sure you read the fine print.

 

5 Things To Check Before You Buy Cyber Security Insurance

 

  • What Isn’t Included? We’re always quick to ask what is covered by our insurance, but often we don’t find out about what isn’t covered until it’s too late. Before you sign any contracts, make sure you have found out what the loopholes are in the cover and what it doesn’t cover, so you can be prepared.

 

  • What Data Will Actually Be Covered? Depending on the type of cover you go for, only certain types of data might be protected. For example, some cyber security insurances will only cover the loss of customer data, leaving you in the lurch if the data stolen or lost is your own. Similarly, you can get policies that work the opposite way, only covering your own information and not customer data. If you don’t deal with customer data this might be perfect, but it’s always worth knowing what type of data you are covering.

 

  • How Will Your Response Be Handled? When you need to call in to make a claim, what happens? What sort of response times can you expect, and what will be the course of action after a cyber-attack?  Different insurers will have different answers, with some offering additional services to help you recover from an attack, such as IT support or disaster management. You need to understand the processes and procedures your insurance company uses before you need to make that claim.

 

  • Have You Reviewed All Types Of Coverage? While the headline might be ‘cyber insurance’, there are several types of coverage when it comes to cyber security. Have you reviewed all of the types of cover, from multiple providers in order to get the best deal? Is there a specific type of cover tailored for your industry that would make more sense than buying basic cyber cover?

 

  • What Do You Need To Be Included? The final thing you need to check is that everything you need to be covered is included in your insurance. If you need to be insured against the theft of private customer records including bank account numbers, you need to make sure that is included in the cover. Even if a professional has recommended that type of cover to you, you should still check the fine print and make sure everything you need it for is covered, otherwise you’re just wasting money.

 

For more information about what you may need from cyber insurance, or whether it’s worth it, you can always get in touch for a consultation or just a friendly chat about the cyber world.  

Posted in Advice ,Security
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