With cyber-attacks increasing, investing in cyber insurance is crucial for businesses and organisations of all sizes to protect themselves from the reputational and financial risks associated with cybercrime.
Before you invest in cyber insurance, consider asking the following questions to be sure you get coverage that best suits your business needs.
What to look for when buying cyber insurance
Cyber insurance protects organisations from the financial liabilities and losses caused by cybercrime and data breaches, and when buying cyber insurance for your business, several factors must be considered to ensure that you purchase the coverage that best suits your needs.
Cyber insurance covers a wide range of criteria related to cyber incidents, including investigation and response costs, legal and regulatory expenses, business interruption losses and data recovery expenses.
You must be sure that the policy limits align with the potential risks and losses your business faces if a cyber attack happens. So, check the maximum amount the insurance company will pay on each claim.
Different businesses face different cyber threats, so ensure the policy you choose covers the specific cyber risks your business is exposed to and addresses your unique vulnerabilities.
Some cyber insurance policies exclude certain incidents and situations, so it’s important to be aware of these exclusions and limitations and to understand exactly what the policy does not cover.
Some cyber insurance policies provide businesses with access to what’s known as cyber incident response services, which might include public relations support, forensic investigations and credit monitoring for affected individuals.
Before signing up for a cyber insurance policy, be sure to assess the quality and availability of those services, as they can be critical in managing the aftermath of a cyber incident.
Your IT systems and network might have existing vulnerabilities, which could leave you exposed to an attack by cybercriminals. So, you must check to find out if the cyber insurance policy you’re considering covers those vulnerabilities or issues that existed before you bought the insurance.
Premiums can vary widely between different insurers, so be sure to compare premiums and ensure that the cost of the policy fits within your budget, as well as its value in relation to the premium being charged.
Our team of experts at Stanmore Insurance will scour the market to find you the best deal, so be sure to contact us before you sign on the dotted line.
A deductible, or excess, is the amount you must pay “out of pocket” before the insurance coverage kicks in. Ensure the quoted deductible is reasonable, proportionate and something your business can afford to pay if necessary.
If cybercriminals attack your business, you must know that your insurer will handle your claim efficiently and fairly. So, be sure to read testimonials and reviews from other policyholders to get a feel for their experiences.
However, we only deal with reputable insurance providers at Stanmore Insurance Brokers, so you can be confident that any claims you make will be handled well.
Check to be sure that the insurance policy is easy to renew so that you can adjust the coverage as your business grows or changes without incurring large administration fees.
Some industries have very specific regulations and compliance standards regarding cybersecurity, so you must ensure that the cyber insurance policy aligns with those requirements.
Loss assessment and risk management
Some insurers provide risk assessment services and offer discounts and incentives for businesses that implement strong cybersecurity measures, and those benefits are something to consider when comparing policies.
Before you finalise the purchase of your cyber insurance, consult our team to ensure that you have the best coverage for your business’s specific cyber risk profile.
What to ask yourself before investing in cyber insurance
There are several essential questions you must ask yourself before investing in cyber insurance to be sure that you make an informed decision and pick the correct coverage for your business needs.
An insurance company will likely ask you similar questions, and you will need to be able to answer them.
What are my business’s specific cyber risks?
Consider the type of data your business handles, the sensitivity of that data, the industry sector you work in, and the potential impact of a cyber incident on your business.
What cyber security measures does your business currently have in place?
Insurance providers might ask what cyber security measures your business currently has in place to enable them to determine the level of risk associated with your business.
What is the scope of the cyber insurance policy?
You need to know what types of cyber incidents are covered in the insurance policy, such as data breaches, cyber extortion, business interruption and third-party liability.
How much coverage does your business need?
You’ll need the appropriate level of cover for your business, which might involve conducting a cost-benefit analysis and considering the potential impact of various cyber threats.
Does the policy comply with any regulatory or legal requirements?
Check that the insurance policy aligns with any specific legal or industry regulations that are relevant to your business.
What to ask your insurance provider when investing in cyber cover
Here’s a checklist of the questions you should ask your insurance provider before investing in cyber insurance coverage.
- What does the policy cover regarding cyber incidents and losses, such as data breaches, ransomware attacks, business interruption, third-party liability and legal expenses?
- What are the policy limits and deductibles?
- Does the policy include first-party and third-party coverage? First-party coverage protects your business against direct losses from cybercrime, while third-party coverage deals with claims made against your business by customers, partners or suppliers.
- Does the policy have any exclusions or limitations?
- What services does the insurer offer in case of a cyber attack?
- Is the insurance coverage tailored to your business’s specific needs and risks?
- How does the insurance company assess the value of damages and losses to your business?
- What is the process and timeframe for filing a claim?
- How is the insurance premium calculated?
- Are any proactive risk management services available, such as employee cyber security training, risk assessment tools or other cyber incident prevention services?
Cyber Liability Insurance Brokers
At Stanmore Insurance Brokers, we are highly experienced in all aspects of the insurance sector, including cyber insurance for businesses of all sizes, and have excellent relationships with many reputable insurance providers.
Your dedicated account handler will help you choose the perfect cyber insurance policy for your business needs. There are no hidden costs, no obligation and we’ll ensure that your premium is within your budget.
To discuss your cyber insurance requirements in detail and learn how we can protect your business from cyber attacks, call us now at 01204 570370 for a free, no-obligation quote.