Putting Cyber Insurance To Work
Cyberattack is one of the most serious crimes facing companies today, and small and medium-sized businesses are squarely in the crosshairs of cybercriminals. The report 2018 Cost of a Data Breach Study: Global Overview from the Ponemon Institute analyzed data from over 477 companies that had experienced data breaches in the 12 month prior to the interview. Here are a few of the more sobering findings:
• The average cost of a data breach was $3.86 million, up 6.4 percent from 2017.
• The average size of the data breaches increased by 2.2 percent since 2017.
• The mean time to identify a data breach was 197 days.
• The mean time to contain a data breach was 69 days.
• Companies that contained a breach in less than 30 days saved over $1 million as compared to those that took longer to resolve.
Cyber insurance is an important tool in protecting your business, but it is vital that policyholders understand the details of the coverage before a cyberattack occurs. Here are four steps that business owners should take to ensure the most effective recovery in the event of a cyberattack.
Understand the Insurance Policy
Insurance policy language generally does not make for light reading; however, it is essential that you understand the policy terms to avoid taking action that jeopardizes your coverage.
Get to Know the Insurance Carrier
Don't let your first contact with your carrier be a call to report a cyberattack. Contact the carrier's claim department and ask them to walk you through the claim process from first report to final settlement.
Talk to Vendors
If the cyber insurance carrier specifies certain vendors to be used in the event of a cyberattack, contact those vendors ahead of time to find out who will handle your case, what to expect, and the types of business disruptions you may experience.
In the event of a cyberattack, who in your company will ascertain the extent of the damage? Who will notify the insurance carrier, employees, and law enforcement? Who will communicate to customers that have been affected? Take the time now to identify post-breach tasks and assign responsibilities.
MiniCo's cyber insurance program provides monoline coverage for a wide range of small and medium-sized businesses for costs resulting from a data breach by the insured and any subsequent expenses that may be incurred from the loss of data. Coverage is available nationwide and includes security and privacy liability, data recovery and loss of business income, privacy regulatory defense and penalties, crisis management costs, and data extortion. To get a quote, ask your independent insurance agent to contact Michael Attanasio at 800-998-5545 or email@example.com.