While many small companies can obtain Cyber insurance coverage with minimal underwriting, larger companies are typically completing a long application and a significant underwriting process. The actual act of completing the application can cause companies to think about policies and procedures that they may have otherwise overlooked. For example the ACE Cyber application asks about privacy policies, encryption procedures, IT security budgets and a disaster recovery and business continuity plan. Going into the insurance purchasing process, many companies may have spent little time considering the risk in these areas. One of my favorite questions has to do with the proper addition, deletion and modification of user accounts. It never ceases to amaze me when a company fails to terminate access upon the departure of an employee or provides administrative rights or access that exceeds the employee's 'need to know'. So much of data security starts with educated users and limitations on access by the IT team.
This article from the Washington Post explains that the "mere process of applying for cyber insurance can help businesses identify tools and best practices (that companies) may lack. Even beyond the realization, many carriers offer services after the policy is sold that can help mitigate the risk of an attack and improve procedures. For example, AIG has partnered with Risk Analytics out of Kansas City to provide basic loss prevention tools to AIG Cyber customers at no charge. Other carriers offer services ranging from a 1-800 number hotline to hours of independent consultants. When considering the right carrier for your Cyber Liability exposure, consider policy language, ability to respond to a breach and also the loss prevention and mitigation tools available. If these factors work well together, you may be able to avoid some breaches altogether or at least significantly mitigate the exposure.
Ready to explore Cyber Liability protection? Take a look at this application and contact us to discuss further. We can help you navigate the variety of options available and help you find the right fit for your company. We can also help you mitigate your risk and reduce your exposures. Don't you want to be more secure?
Monica M. Minkel, RPLU, MLIS, cyRM, CPLP has been working exclusively with Directors & Officers Liability, Professional Liability, Cyber Liability and related products for nearly 20 years. She started her interest in finance by loaning money to her mom at age 11 (complete with a loan agreement and competitive interest rate). She is passionate about all things in the financial industry and the way technology is changing the way capital markets function.