A comprehensive standalone Cyber Risk Insurance policy (also called Data Breach, Privacy and Network Security insurance coverage) is a critical piece of all organizations’ insurance protections (see prior posts here & here), and regulators have recommended the coverage as well (see our prior post here). A strong recommendation for standalone Cyber Risk Insurance is included in a NASDAQ article entitled Cyber Insurance: Why Your Company Needs It:
Clearly, stand-alone cyber insurance will become yet another basic element of a company’s insurance coverage, just as property insurance and health insurance are.
The article notes that other policies may not fully cover costs from cyber attacks, and that cyber insurance and IT security go hand in hand:
those companies with good cybersecurity practices are more likely to purchase insurance
The costs related to breaches and other cyber attacks are rising, and go beyond the direct, known costs. These rising costs are driving interest in and demand for Cyber Risk Insurance, and a vibrant market. The market is competitive and growing, and continues to evolve quickly. The change is good for buyers and is leading to comprehensive coverage, but only from a few insurers. As noted in an XL/Catlin article (see here), policies are not all the same. Care should be taken to ensure that each insured has the best coverage possible:
The devil is in the details…companies…end up purchasing cyber products with inadequate coverage, restricted by exclusions and restrained by sublimits.
As we have noted previously, Cyber Risk Insurance is an essential coverage for businesses of all sizes for protection from both criminal attacks and employee error; it should not be optional. But coverages vary widely, so finding a comprehensive policy that fits a particular insured can take some work, and an expert.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel Cyber Risk Insurance, particularly at hard to place accounts.
Specialty Insurance Expertise: Tennant Risk Services
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