To mitigate the financial risk of cyberattacks, some companies are turning to cyber liability insurance. It’s a relatively new type of coverage offered by insurance companies to protect businesses against Internet-based threats and data breaches.
Although we’re not in the business of selling insurance here at Genetec, we are committed to promoting cybersecurity best practices – especially around keeping your physical security systems safe. If cyber liability insurance is something your organization is looking into, here are five things you’ll want to consider before making your decision:
1. Identify the cyber risks – There are as many as 12 different types of coverage available for cyber threats. These can include a range of online and offline risks, spanning everything from data breaches to theft of corporate assets. By identifying these specific pitfalls upfront, you’ll be able to find the insurance that best meets your organization’s needs.
2. Understand the policy coverage – Your existing insurance policies might be very complementary to these new cyber policies. Some businesses might also require a combination of products to get adequate coverage. It’s important to understand how each product could benefit your organization should you become liable for a data breach.
3. Consult a professional – Damages resulting from cyber liability can be difficult to quantify and grasp. Translating cyber risks into a financial model is a key step in ensuring adequate coverage. If you don’t have the resources in-house, consider seeking guidance from a professional broker or field expert who understands both worlds of business and cybersecurity risks.
4. Know the claims process – Understanding the claims process when selecting cyber liability insurance is critical. Each insurance provider has processes set up for vetting a claim’s authenticity, and a general timeline for which funds can be paid. If a data breach happens, you’ll want to know how quickly relief will become available.
5. Be aware of other insurance perks – While monetary relief is helpful, some insurance companies provide extra perks such as cyber investigators or public relations firms. Finding out whether your coverage includes these services can help you manage the aftermath of a breach with greater ease and polish.
Managing risk beyond the insurance
Cyber liability insurance is not a get-out-of-jail-free card. Don’t forget, you need to have a strong security posture to be insured and for your monthly payment to not be outrageously high!
By choosing to subscribe to cyber insurance you are transferring the risk to another entity, but you still need to do your part to avoid being an easy target and minimize risks within your organization.
One way to do this is by discussing cybersecurity with your integrator and vendor to help strengthen your physical security system using their expertise.
The good news is that our solutions are designed with several security layers and we employ advanced authentication and encryption technologies. We help you understand the threat actors and assess potential security risks, while our comprehensive approach assists you in mitigating that risk and building a defense-in-depth strategy to achieve greater cyber resilience.