Business Owner: “What you think about cybersecurity insurance?”
Me: “Very lucrative business today.”
Business Owner: “No, I mean, do you think I need some?”
Me: “Oh! What you’re really asking is, will it save your bacon if you get hacked.”
Business Owner: “er…um…Yeah!
Me: “Maybe. The cost/value of cybersecurity and cybersecurity insurance both depend on what security measures you put in place.”
In a nutshell, if you have good security measures, you are both protected and will pay smaller premiums for cybersecurity insurance. If you rely on antivirus or other blacklist technologies protecting you, then you will likely to be hacked, will pay higher premiums on your cyber security insurance, and may not get full coverage for all your losses.
So be sure to include the top cybersecurity strategy that is recommended by US-CERT/DHS and other industry standards: application control technology. NOT doing so will increase your risk calculation.
Assuming then, that you put into place the best cybersecurity defense strategy (including Trust Lockdown from White Cloud Security), then you are ready to negotiate the price of good cybersecurity insurance coverage.
There are a number of things to consider regarding coverage according to the National Association of Insurance Commissioners (NAIC).
“Cyber liability policies might include one or more of the following types of coverage:
- Liability for security or privacy breaches. This would include loss of confidential information by allowing, or failing to prevent, unauthorized access to computer systems.
- The costs associated with a privacy breach, such as consumer notification, customer support and costs of providing credit monitoring services to affected consumers.
- The costs associated with restoring, updating or replacing business assets stored electronically.
- Business interruption and extra expense related to a security or privacy breach.
- Liability associated with libel, slander, copyright infringement, product disparagement or reputational damage to others when the allegations involve a business website, social media or print media.
- Expenses related to cyber extortion or cyber terrorism.
- Coverage for expenses related to regulatory compliance for billing errors, physician self-referral proceedings and Emergency Medical Treatment and Active Labor Act proceedings.
Understand what your risk is, and select the specific coverage that fits your risk. But first, give yourself the best protection available, which also gives you the best rates for cyber security insurance.