leaders are hardwired to reduce risk and limit exposure. One precaution
receiving increased executive scrutiny is cyber insurance (CI). The concept is
still relatively new and the industry is rapidly evolving, so questions about
costs, coverage and even necessity remain fairly common. Consider these trends:
1) The number of CI policies written is increasing every year; the value of
premiums paid in 2019 is around $2.5B.
Total cyber claims grew 39% from 2017 to 2018, however average payouts have
been decreasing since 2012.
2020, factors affecting your premium will include the underwriter’s assessment
of your firm’s: security training protocols, loss history, types of data
and system vulnerabilities.
Despite other advances, the industry has not yet standardized coverage, so
terminology may be inconsistent and confusing.
can get data breach protection, which covers your costs when data you hold is
attacked; and/or cyber liability coverage, which offsets costs when you’re
accused of causing or allowing a cyber incident.
with an IT managed services provider (MSP) on a well-thought-out business
continuity plan is a good first step.