Cybersecurity insurance policies should be a key piece of your cybersecurity protection plan. However, don’t let yourself get tricked into believing that all policies are created equal. Just like any insurance policy, there are many points to consider. Here are just a few:
1. Be conscious of the coverage exclusions. While your business may be considering a $1 million cyber policy, look closely at the exclusions within the policy. Many policies have lower levels of coverage for social engineering or phishing crimes. With those events on the rise, it is important to know what your insurance would cover in the event the worst happens. Imagine a policy that covered fire damage but only if the fire was started by a strike of lightning and not by intentional arson with a match. Cybersecurity insurance policies can have similar nuances.
2. Cybersecurity policies can be hyper technical and difficult to understand. Many cybersecurity insurance policies contain a slew of technical cyber terms in their endorsements. Make sure you have a lawyer or technical expert help you decode the terminology and what events may be covered.
3. Shop around and get coverage that can cover the worst. Cyber events are on the rise. It is not a question of if a business will be hit, but rather when. Just as you insure the brick and mortar components of your business, make sure you have a policy that is sufficient to cover business interruption or large scale incidents. And always ask for more than one policy to consider when shopping for cybersecurity insurance.
Make sure you carefully review the policies you may be purchasing for your business. That way, when the zombie(bots) attack, you will be covered.
Happy Halloween and Cybersecurity Awareness Month from the Woods Rogers Cybersecurity Practice Group!