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Have you ever heard of Cyber Liability Insurance? Is your organization utilizing this policy addendum? If so, did you know that there are certain requirements you must meet to be able to make claims on data breaches?

What is cyber insurance?
 
Cyber insurance was developed to help companies manage the risks associated with storing and processing customer data. In the event of a cyber incident or data breach,  this additional policy can cover services that reduce the costs of mitigating the effects of a breach and provide financial protection against revenue losses. Most Cyber Liability policies require a well documented remediation plan (Incident Response Plan) that could help to reduce the likelihood of a lawsuit. 
Why do organizations get it?
 
Simply put, data breaches are expensive. If your organization is responsible for exposing certain data because of a cyber breach, you might be required to:
  • Conduct forensic analysis.
  • Notify affected customers of the breach.
  • Pay for credit monitoring for those affected.
  • Many states also fine businesses responsible for breaches on a per-record basis. And because it’s common for some organizations to have tens of thousands of customer records (or more), fines can add up fast.
  • It’s also possible that your organization could be sued for causing or failing to prevent a breach.
So Cyber Liability Insurance sounds great right? Here’s what they don’t tell you! 
 
Cyber insurance agencies fail to mention that an organization must have certain baseline  policies (employee adoption, external threat identification and mitigation, and internal processes and controls designed around a framework) in place in order to make a claim for a data breach. So even though your organization may be paying for the cyber protection policy, you still may not be covered. 
 
For example, one agency requires you to have Multi-factor Authentication in place in order for your cyber breach to be covered. If it isn’t, you will not be able to claim the cost of the incident. When you can’t cover the costs of your organizations breach, you are risking the financial and reputational value of your organization.
What we can do to make sure your liability insurance will do what it is supposed to
 
Total Cloud IT can not only make sure all your baseline policies are identified and met to ensure your protected through your cyber liability insurance policy, but also help you implement what needs to be in place. We offer a full analysis of your risk profile and data governance needs and deliver a report on our findings.

Please reach out today if you are interested in ensuring your organization is protected against these threats and to make sure you are getting the best out of what your pay for with your cyber liability protection!

 

 

Best, 

 

 

Total Cloud IT

sales@totalcloudit.com

(866) 410-1356