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Get ready to shop for Cyber liability Insurance

Cyber Data Risk Ma...

Jul 16, 2020
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Cyber liability insurance policies (also known as “data breach” insurance) and their coverage vary dramatically by insurance carriers. For businesses, choosing the right cyber liability insurance policy can be a challenge. Working with a knowledgeable insurance broker who has experience with cyber liability insurance policies can reduce the challenges.

Before you start shopping, though, there are a few things you need to do to get ready:

1) Assess your cyber hygiene

Before applying for cyber liability insurance, businesses should have policies and procedures in place that show they are protecting and securing their data as well as enforcing their security and privacy policies. While cyber liability insurance can help businesses mitigate risks, it cannot replace good cyber hygiene.

2) Evaluate your needs and priorities

Has your business assessed its risks for a data breach? Depending on your industry, your risk for a data breach may be considered anywhere from minimal to very high.

Has your business conducted a risk assessment? Evaluate, identify and mitigate any gaps in your privacy and security programs prior to applying for a cyber liability insurance policy. The risk assessment can help you assess your needs for cyber liability policy coverage matched to your business vulnerabilities.

3) Predict your data breach

Once you have assessed your risks, you will want to think of as many possible data breach scenarios as you can that could happen to your business. The purpose of this exercise is to arm you with potential data breach scenarios and prepare you to go on a search, with a knowledgeable insurance broker, for a cyber liability policy that fits your needs. While this may seem like a time-consuming process, it could help ensure that you’re covered in the event one of these scenarios happens. The whole purpose of purchasing cyber liability insurance, after all, is to ensure that you are protected from potential risk.

After these three steps, you are ready to compare different cyber liability insurance policies.

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General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Meena Wahi, Cyber Data Risk Managers, ABN 34 161 961 422