Have you been considering cybersecurity insurance but aren’t sure if you qualify? Before securing coverage from a carrier, you need to do your due diligence and enhance your cybersecurity.
Key points in this article:
During the past 12 months, a clear trend has emerged as many of our client’s cyber insurance came up for renewal.
Before the renewal, cyber insurance carriers require more sophisticated written cyber policies, tools, training, and disaster recovery systems. In many cases, are also significantly increasing premiums for individual cybersecurity risk items that are not being addressed.
This is because cybercrime is becoming more common and more expensive…
Security Magazine says a small business's average data breach cost is $36,000 to $50,000. Not to mention the lost productivity and reputational damage to your company.
Of course, this number is much greater when we look at large successful businesses. Here are the stats:
In light of this, business owners have started investing in cyber insurance coverage to protect them against these expenses. Cybersecurity insurance is protection designed to help cover the potentially massive expenses associated with an unavoidable data breach. It can be a worthwhile investment, so long as you know how it works.
The inevitable threat of cybercrime has led businesses to consider cybersecurity insurance as a final layer of reassuring protection. However, as it becomes more critical, it’s also become more difficult to qualify.
It’s becoming increasingly necessary, as many insurance providers have begun drawing a clear line between normally covered losses and those incurred by cybercrime-related events.
That means that if your cybersecurity doesn’t meet the standards of your insurance provider, you may not be as well covered as you think.
To be clear, this is just a sampling of the types of questions you can expect from your cyber insurance carrier—most questionnaires are four pages at least.
Regardless, it’s plain to see that there’s a lot involved in qualifying for cybersecurity insurance. Are you prepared to be able to answer these questions?
If you are not sure or unable to answer some of these questions, feel free to reach out to Orbis Solutions for a complimentary discovery call to help better protect your business. Without a comprehensive cybersecurity strategy and proper team engagement, you may not qualify.
In the event of a hack, a business may not qualify for full coverage if its cybersecurity standards have lapsed or if it can be found to be responsible for the incident (whether due to negligence or otherwise).
The core issue is that as cybercrime becomes more common and damaging, insurers will become more aggressive in finding ways to deny coverage. It’s in the interest of their business to pay out as little as rarely as possible, which means the policies will tend to rely on a series of complicated clauses and requirements that covered parties have to comply with.
A key example is when Mondelez International was denied coverage for the $100 million of damage they incurred from the NotPetya attack. Their insurer, Zurich Insurance, cited the obscure “war exclusion” clause, claiming that Mondelez was a victim of a cyberwar.
This is not an isolated incident. As discovered by Mactavish, the cybersecurity insurance market is plagued with issues concerning actual coverage for cybercrime events:
Orbis Solutions can deliver the cybersecurity support needed to ensure that you qualify for a robust cybersecurity policy and help you meet the standards in the claim process.
Our team provides cybersecurity and technology services for businesses like yours—we are available to help you develop a robust cybersecurity defense. We can ensure you qualify for a policy and minimize the chance that you’ll have to claim your cybersecurity insurance.
Get in touch with the Orbis Solutions team to discover how our cybersecurity suite will manage your insurance policy compliance.
Orbis Solutions, Inc., in Las Vegas, Henderson, Summerlin and throughout Nevada, has developed creative, strategic and cost-effective technical solutions for a wide variety of clients. Offering a diverse range of products and services, Orbis provides IT solutions to promote your company’s productivity and profitability, and help you sort through the latest-hyped technology, so you can select the best hardware, software or service for your business needs.