Here are a few things you should know about cyberliability insurance:
Check your coverage. In the past, many policies provided some form of cyber/privacy (CP) coverage through liability, crime, and professional policies. With an increase in claim activity, companies are now excluding CP coverage under most common policies. Such policies were not designed to anticipate the type of claims now happening nor priced for this exposure. If you already have a cyberliability insurance policy, find out exactly what you’re covered for.
Consider your coverage limits. With an average cost of $206 per breached record, determine how much coverage you’ll need. Target and Home Depot each have spent over $160 million on breach expenses that weren’t covered by insurance. Select the amount of coverage that is most appropriate for your business should you be
Examine the policy closely. In addition to reviewing the overall limit of liability, look at what is covered in the subsections under the primary limit. Work with your insurance agent to identify and understand the risk exposures to match with the proper subsections. “I speak with many companies that say they have $1,000,000 limit but once we look at policies, coverage is actually very limited,” Coupland says.
Coupland suggests policy coverage includes the following if risk exists:
- 1st and 3rd party expenses
- Independent Contractors
- Proper territory whether US or worldwide
- Check vendors for their CP coverage
Business Interruption has also been added to CP policies. “Any company that relies on technology to run their business should have this coverage,” says Coupland. The standard package policies provide BI but only if for insurable loss such as fire, wind, etc. BI caused by cyberattacks is generally not covered under the standard BI policy-something most companies don’t know. If there is direct attack or grid shutdown by attack, there probably isn’t coverage under standard policy.
It’s easy to get a quote for cyberliability insurance. All you need is the company name, website, and estimated revenues. For more information on cyberliability insurance or what you can do to minimize your risk for a cyberattack, contact us today.