Last month we discussed the fact that YOU WILL be hacked at some time in future (even if you have already been victimized). We shared some tips that can help mitigate the damage. In this month’s newsletter, we want to talk about Cyber Insurance.
Like any insurance policy, it is extremely important to understand what you are buying, and what the insurance company is covering. More importantly, you need to spot what “gotcha’s” or “trapdoors” the insurance company has placed in the contract.
Deloitte recently penned an article about Cyber Insurance. “Many corporate buyers appear to be losing sleep over the lack of clarity and certainty in cyber insurance coverage…” Never have words been so prophetic.
At issue are the uncertainty of cyber risks. Offset by the fact that cyber insurance is the next big money maker for the insurance industry. Add to that mix the fact that “Standard property and casualty coverages—including directors and officers, professional liability and business interruption—are often “silent” on cyber risks, not explicitly stating whether or not policyholders are insured for such emerging risks.”
What you need to know
Deloitte also stated “To avoid coverage misunderstandings, buyers were encouraged to run cascade scenarios and conduct gap analyses assessing how their risk management and insurance programs might respond in a cyber crisis.” We believe a true 360° gap analyses would also include a complete cyber review.
SBA * Consulting believes you need to find an insurance representative who understands the industry. Who can review your current property and casualty coverage and compare and contrast. They need to know what other insurance companies are offering and the different types of cyber coverage available.
You then need to have the policy ripped apart and analyzed.
The customer needs to know what is covered, what is not covered. Where are the gray areas?
What do you as the customer need to do to move those “not covered or gray areas” to the left. In other words gray becomes covered, not covered becomes gray.
This other article from Deloitte may help: “Demystifying cyber insurance coverage”.
Cyber Security and Cyber Insurance should put at the top of your corporate plans.