All companies that use computer technology today must deal with cyber risk. Ransomware attacks are on the rise and SMEs are being targeted more than ever. With the transition to more people working from home in 2020, cybercriminals are taking advantage of the opportunity to exploit teleworkers.
Cyber insurance can be crucial for a business of any size. The following checklist can help savvy business owners get the right coverage for protection against cyberattacks.
Decide if your company needs cyber insurance
It is likely that you need cyber insurance about your company:
- Handles sensitive information: This can contain much more than health information, social security numbers, bank accounts, etc .. Even the most seemingly harmless information can be used by cyberattacks.
- Have staff using their own devices: Mobile phones, laptops and other electronic devices may be lost or stolen. If this happens, it can give criminals access to important business information, including confidential data.
- Hosting a Public Website: If your website interacts with customers or clients and stores their login data, you are vulnerable to cyber theft.
- Using a Third-Party Provider: If your company has a third-party vendor that supplies goods you sell, provides an online shopping opportunity, or manages your database, you may be vulnerable to cybercrime. You do not control the security level of a third party.
- Relys heavily on confidentiality (for example, a dating site).
- Gather information that, if lost, could lead to embarrassment, intrusion, or bullying.
Decide what to look for in a cyber insurance
Think about how much cyber insurance you need and how much your business can afford. Evaluate your risks and the types of coverage you need. Decide if unintentional errors are to be covered, as well as intentional attack. Decide what your policy can exclude, what data should be covered and where it is stored. Find out what insurance providers offer, such as legal fees, first-respond services or coverage of business interruptions.
Customize your cyber insurance policy
This overview should include:
- The level of risk your company faces
- The type of policy (package or stand-alone) that works best for you
- Types of coverage (network security, privacy responsibility, media responsibility)
- Coverage of your business needs
Ask questions to potential suppliers
With your insurance in hand, get insurers to answer important questions about the cyber insurance they provide. For example, you should ask about:
- Exemptions from the policy
- Deductible amounts
- Response time after a data breach
- Time frames for coverage
- Geographical coverage area (is the coverage limited to within the US borders?) [1
- How coverage and insurance limits apply to first (policyholders) and third parties
- Premium increases after claim
- Review or compliance obligations  How the supplier handles cyber threats
Finding the right cyber insurance for your company can be a complicated process. Our knowledgeable agent is happy to help.