Maximizing Your Cyber Insurance: Understanding the Full Range of Protection

Most of the calls I receive about cyber insurance are for Fraudulent Funds Transfer.  This seems to be what the caller is most interested in and for good reason especially if your profession is in the area of law, real estate, or title/escrow work.  However the cyber policy is much more than just fraud transfer coverage.

The policies are usually what I consider a program or a suite of coverages made up of first and third party benefits and a strong risk management team.  Several of the carriers that write cyber insurance will perform or run an analysis of your website/online presence and identify weakness that exists and exposures that may lead to a cyber attack or event.  The carrier prepares a report that will not only identify the weakness but will also offer suggestions on how to correct or eliminate the exposure.  They also will rank or compare your cyber situation and scan results to other companies of similar size and industry. Allowing you to see if you’re keeping up with others in your industry in keeping your business, your clients and your customers safe from cyber attacks.

Other benefits provided by most cyber policies include: Notification costs.  Did you know that the government requires you to notify your customers in the event you have a cyber attack and personal/confidential data is compromised?  Think of how many files you have.  It won’t be cheap to notify and complete this task.  Ransomware.  Think you’ll never become a victim of this because your office is too small, and you don’t have or keep large amounts of personal confidential information? Think again.  Everyone is a target for this type of claim.  A hacker breaks into your computer system and stops your ability to use it or shuts down the entire system unless you pay XX amount of dollars.  How long can your office run with no access to your computer system?  

Fraudulent transfer of funds, risk management team services, strong claims team, notification costs and Ransomware coverage only scratches the surface of what coverages/benefits are provided in most cyber policies.  Although you may only have interest in one or two of these you need to be aware of all the coverages available to you in your cyber policy.  Rarely in a cyber claim is only one benefit/coverage part triggered.  Usually several parts come into play.  Don’t short yourself by not knowing all of the coverages and assistance that is available to you under your policy.  Read it and call your broker, and or the risk management team of the program with your questions.