Did you miss our recent roundtable with Mary Spicer from Falcon Risk Services, “We Know More About Your Financial Risks Than You Do”? No worries—you can still catch the replay and, more importantly, walk away with these key tips on how to get the most out of your cyber insurance.
Let’s be honest—cyber insurance has quickly become a must-have in today's digital world, where cyberattacks are as common as email spam. Like other types of insurance, it’s all about transferring risk to a provider, but there’s more to it than just signing on the dotted line.
To truly maximize your cyber insurance, you’ll need a solid game plan. Here’s how you can ensure your business is fully protected, with minimal gaps, and a policy that delivers when it counts.
1. Know Thy Risk Profile (Yes, ArxNimbus Can Help!)
Start with a thorough risk assessment. What’s your unique cyber risk landscape? Are you worried about data breaches, ransomware, or maybe business interruptions? Knowing where you're vulnerable allows you to tailor your policy to cover what matters most.
Also, categorize your assets—figure out what’s crucial to your operations and make sure they’re prioritized in your coverage. It’s like ensuring your prized possession is safely locked away.
2. Customize Your Coverage (Don’t Just Take the Default!)
Look carefully at your policy’s limits and sublimits. You want coverage that actually covers! Pay attention to the sneaky sublimits, which may cap payouts for incidents like ransomware. You’ll thank yourself later.
Make sure your policy casts a wide net. Think data breaches, third-party liability, fines, legal costs, and even that reputational damage that can sting long after the incident. And don’t forget business interruption insurance! Cyberattacks can grind everything to a halt, so it’s smart to ensure you’re covered for lost income.
3. Mind the Exclusions and Deductibles (It’s in the Fine Print)
Exclusions are where policies can get tricky. Watch out for what's not covered—like pre-existing vulnerabilities or certain types of attacks. Negotiate to minimize these exclusions, if you can.
As for deductibles, strike a balance. You don’t want something so high it hurts if you ever need to file a claim, but not so low that you’re paying sky-high premiums.
4. Get a Broker Who ‘Gets’ Cyber Insurance
Find a broker who speaks the language of cyber insurance. This isn’t your run-of-the-mill insurance; it’s complex, and having an expert can save you headaches (and money). Plus, don’t be shy about asking for multiple quotes—shop around for the best deal!
5. Strengthen Your Cybersecurity Practices (Your Insurer Will Love It)
The better your cybersecurity, the better your insurance terms could be. Insurers may even give discounts if you’ve got things like multi-factor authentication, regular system patches, and employee training programs in place.
And don’t forget to have an incident response plan ready. It’s like having an escape route mapped out in case of fire—it’ll reduce damage and show insurers you’re serious about managing risk.
6. Regularly Review and Update Your Policy
Things change—your business grows, you add new tech, or perhaps you’ve just survived a cyber incident. Make sure you’re reviewing your policy at least once a year, and update it as necessary. If your business has made significant changes, don’t let your policy lag behind!
7. Leverage Those Policy Enhancements (Because Why Not?)
Did you know you can get endorsements to enhance your coverage? These add-ons can cover things like social engineering fraud or even contingent business interruption (that’s when your vendor’s attack interrupts your operations). Depending on your industry, you might find specialized policies with even better options.
By following these seven tips, you’ll be able to navigate the often confusing world of cyber insurance with confidence. A well-constructed policy can be your lifeline in the face of cyber threats. So, make sure you’re prepared and covered, because in today’s digital landscape, you can never be too safe.
Download this as a cyber insurance planning checklist.