Managing Cyber Risks: Pitfalls of Cyber Insurance

As technology continues to advance and organizations transition into a completely digital space for their private information and data, cyber insurance has become a commonality among numerous industries.

Currently, corporate cyber insurance accounts for over 75% of the global market, with researchers projecting industry growth to reach over $20 billion dollars by the end of 2025. As the market continues to grow, many organizations are finding cyber insurance to be a necessary requirement for their company’s data protection.

As part of our KAPLAN series, in this 2-minute video, JANUS COO, Lyle Liberman, provides some necessary insight on why organizations should be cautious when selecting a cyber insurance plan because there can be a variety of pitfalls.

When purchasing cyber insurance, it is important to thoroughly review the terms and conditions listed on the contract, especially the exclusions. Having an attorney review the paperwork is highly recommended before signing any cyber insurance policy for your company.

Consequently, many organizations find themselves in a bind with their cyber insurance companies when it comes to filing a claim due to exclusions. When a breach occurs and a claim must be filed, the insurance company will proceed to ask a series of questions, such as:

• What happened?
• When did this event take place?
• What were you and/or your team doing at the time of the event?
• What safety protocols do you have in place?
• Who is involved?
• Do you have any proof of evidence to support your claim?

It is important to note that all insurance policies have their limits. Because cybersecurity and IT compliance continue to grow in demand and complexity it’s difficult to navigate without an IT expert, as a result, many organizations face declination of a claim by their insurance companies. Ransomware coverage alone has gone up exponentially, with insurance plan costs greatly increasing while actual coverage decreases. 

The biggest impact organizations can make when it comes to the protection of their data and cyber security is prevention. Your system protection strategies should include an independent 3^rd-party cyber security firm like JANUS. Doing so can decrease the chances of infiltration from hackers seeking to extort and/or infect your network and operations. 

CONTACT JANUS ASSOCIATES 

Since 1988, JANUS has helped hundreds of government agencies, commercial entities, educational institutions, and not-for-profits protect their infrastructures, data, clients, and employees, and we have the references and testimonials to prove these claims. Our decades-long experience has allowed us to achieve deep expertise in every sector and specialty that exists, including yours. 

Contact Chris Kniffin, Corporate Director, to learn more about how a team of affordable senior-level professionals can help you secure your organization.