Cyber insurance is changing, the application process is more complex and the requirements to get coverage are growing. Here are 7 things to keep in mind as you prepare for your next renewal:
The time to start working on your security is now. Do not wait until you’ve been breached or until you’re required to improve it. If you rush security implementations, they will likely not be successful.
Cyber attacks incur more costs besides the initial ransom demand. You will have investigation costs, legal expenses, business downtime, etc. A good cyber insurance policy will cover everything so that you can recover as painlessly as possible.
Endorsements vs. Stand-alone Policies
Make sure that you understand your cyber insurance policy. Many people think they ‘have cyber insurance’, but they simply have an endorsement that won’t cover anywhere near what they would need if a breach occurred. Stand-alone policies will offer the right amount of coverage and access to cyber-attack recovery services.
Give Yourself Time to Do The Questionnaire Properly
Cyber insurance questionnaires are becoming more complex and the answers you provide will become increasingly important. Make sure you engage with your IT and security team at least 3 months before the questionnaire is due so that there is enough time to do it right.
Security Expectations Will Keep Rising
There are a handful of security elements that are required by most carriers – MFA, segregated backups, and security awareness training. This list will continue to grow and evolve so you must always be aware of what the current security expectations are for your business.
Claims Can Be Denied
We’re starting to see carriers reject claims based on inaccurate questionnaires. If you say you have MFA for all your accounts, do you know that for sure? If there is one account that isn’t properly protected and it becomes the entry point for a cyber-attack, your claim could be denied on the grounds that you didn’t have the security that you claimed to have in your questionnaire response.
Annual Cyber Insurance Review
Create a yearly review process to ensure that you are properly positioned for renewal. Re-evaluate your coverage and make sure that you are meeting current security expectations.
Cyber attacks are rising across the board and cyber insurance is the key to recovery in the event of a successful attack. The main point we want to get across is that cyber insurance is a rapidly changing product. You need to stay on top of what is covered, what you need to do to get approved, and how to take full advantage of the services included in a good cyber policy.
Looking for more information on cyber insurance? Watch our recent webinar Cyber Insurance: Getting The Right Coverage & Preparing for Change to get ahead of the upcoming industry changes.