What You Need to Know Now (and Ask Your Broker) About Cyber Insurance
October 6, 2016
By Daniel B. Garrie
It is undeniably the age of the cyberattack. One need look no further than the headlines of the nearest newspaper to see that there has been an explosion in the frequency and gravity of cyberattacks.
Companies face threats from every direction, ranging from nation state actors, cyber criminals, unsecure vendors and even malicious insiders. With a landscape so full of risk, companies increasingly are turning to cyber insurance in order to manage and mitigate their cyber risk.
One reason major companies have made this move is increased communication between the IT and risk management departments and their boards of directors. In part due to the above-mentioned headlines, these departments are able to communicate the fact that a premium payment is but a drop in the bucket compared to the costs associated with a cyber event.
That said, cyber insurance policies are highly specialized, and differ immensely from insurer to insurer. Purchasers must therefore become educated in the many nuances of cyber insurance to ensure that they are purchasing the right policy.
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