Your clients across all sectors of business are beginning to understand the serious ramifications pertaining to Cyber Risk. So many businesses now rely on the Internet for services such as online marketing, administrative functions, inventory management, credit card processing, and distribution controls. Cyber security and information protection is, quite frankly, no longer an option.
While it can be somewhat challenging to deal with these issues for companies of all sizes, cyber threats are simply too real to ignore. Hackers are often the main threat, but any theft of private and confidential information that disrupts delivery of services can lead to brand, as well as reputation damage, regulatory scrutiny, stakeholder concern and dissatisfaction, and severe financial losses.
It’s important that companies train employees about these types of attacks and exactly how they should be managing confidential information. They also need to be taught how to respond in the event of an attack.
Cyber Insurance is becoming more commonplace
Many of your clients are probably now taking a closer look at the protections provided by Cyber Risk insurance policies. They can see just how often data breach incidents and related cyber threats are on the rise, and gaining publicity through news outlets around the world, and how government agencies have become more actively involved in policing the corporate response to this dilemma.
There are a number of different names that these policies are sold under, including “information security”, “network privacy,” and “media liability” coverage. Still, unlike other types of insurance, there’s no standard form on which the insurance industry as a whole underwrites cyber coverage. You should have your clients examine the different available coverages to determine which is best suited to fit their needs.
Obviously this does provide some challenges when buying coverage, but this may also allow more room for negotiation of the terms of cyber policies, as where many other types of coverage will not. Most policies covering Cyber Risk currently in the marketplace offer a combination of traditional liability coverage protecting against claims by third parties, and first-party coverage protecting against losses suffered by the insured.