Things You Should Consider When Getting Cyber Insurance for Your Business

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Cyber insurance is important and necessary but many businesses don’t realize this. Large law firms in particular are often the targets for cyber thieves because they tend to have large amounts of personal data that these criminals seek out. Also, larger firms generally store a lot of protected information like trade secrets and corporate data.
What Does Cyber Insurance Cover?
A cyber insurance policy has several inclusions. It is smart for businesses that store protected client information or trade secrets to select a policy that includes the most critical features.
One such feature is the investigation of privacy and cyber incidents. It includes costs and fees associated with outside counsel, forensic investigation, sending letters regarding security breaches to clients, crisis management or public relations. Even if there are no lawsuits filed this coverage is still applicable.

Defense against lawsuits, demand letters and various claims is also another critical feature. So too is business interruption coverage. This feature covers the cost of lost income during a specified time in the event that the business must temporarily halt operations due to the security breach. It also includes denial of service attacks to virtual business sites.
A valuable policy covers third-party liability that arises from security breaches. This includes cases where policyholdersaccidentally distribute malicious code to customers. Businesses should seek out a policy that provides coverage from exposures like asset loss, income loss and cyber extortion. It is also useful if the policy includes the costs of any regulatory investigations that are deemed a necessity. Internal and external hacks are normally covered and most policies generally cover negligent acts.

Cyber Insurance Checklist
It is useful to create a checklist of questions to ask your agent to make sure the cyber insurance policy is as comprehensive as possible. This is in addition to ensuring that the policy includes all of the important features needed. Be sure to ask the following questions:

– Are errors, omissions and acts of outsourced providers or vendors covered?
– Are the acts of rogue employees covered?
– Is data that falls into the wrong hands covered?
– Does the policy have wording that could void the coverage in certain instances?
– Does the policy have a sufficient limit for individual risks?
– Do any other existing policies offer supplemental cyber coverage?
– Does the policy provide coverage for data placed in the hands of trusted vendors?
– Does the policy offer retroactive coverage for issues that are not noticeable immediately?

Mistakes To Avoid
When shopping for cyber insurance there are a few mistakes business owners tend to make. Not understanding the length of time needed for the application process is one of the most common. According to the experts it is generally necessary to involve several parties, which means it tends to take longer than people anticipate. Plan to include your IT chief, accounting manager, risk management coordinator and the company’s legal counsel. You may also want to speak with other business owners in the same field to find out what solutions they use to deal with security breaches.

Another common mistake among business owners is a failure to take advantage of what the insurance agency offers. Many of the products that insurance agents suggest are useful and worth the investment, yet many business owners dismiss them as upselling attempts by the agent.

Experts stress the importance of paying attention to any gray areas in the policy. There are specific rules for some incidents and certain issues may not be covered. Don’t assume that all policies are the same. In fact, always ask your agent to clarify these matters. Cyber insurance policies are not cookie-cutter products so it is important that you know what is covered and to what extent. Before you secure a policy always discuss your concerns with an agent.

To learn more about finding a cyber insurance policy that suits your business, contact us today to speak with a qualified professional. Our company focuses on catering to the business insurance needs of clients in Long Island, Manhattan, Brooklyn, Bronx, Queens, Nassau County, Suffolk County, New Jersey, Connecticut and Pennsylvania. So if you’re in New York, let’s talk. We can provide you with cheap insurance rates.

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