In today’s increasingly complex technological landscape, the importance of having cyber insurance is growing exponentially. Keeping up with advancements is one thing but staying abreast of the latest security threats and nuances of the insurance world is fast out-pacing even the more technically astute amongst us. In the UK alone, at least one-third of firms are currently experiencing cyber incidents on a weekly basis: highlighting just how important it is to have cyber insurance. However, not all policies are created equal and it’s important to consider whether a policy really provides the cover that’s required.
Problems with cyber insurance policies
Recently, there have been issues surrounding the potential validity of some insurance policies. This has led to a degree of confusion, and some firms may not even be aware that their policy could be invalid. IT compliance can be a complex issue, but when dealing with insurance policies, it is imperative that all working practices are in-line with policy requirements. For example, something as apparently insignificant as the restarting of a server could invalidate the terms of a policy.
Such small details can cause big problems. Despite many insurers previously honouring such policies, it has recently come to the fore that Lloyds of London will no longer underwrite policies for insurers who do not enforce policy terms stringently. This means that insurers will be looking to tighten up their procedures and will be expecting businesses to do the same.
Unfortunately, smaller businesses may not have the awareness or the expertise to understand and make informed decisions in response to these changes. As the complexity of technology and of the threat landscape evolves, so too will cyber insurance policies and the associated outcome of any claims. This makes it difficult for small businesses to ensure they remain adequately protected: they may not even know what to check for in a policy.
What a business should check for in a policy
While keeping costs down is always an important consideration for any business, so too is ensuring that insurance cover is adequate to meet their needs should the worst happen. It is, therefore, important to consider whether a business is paying for a high enough level of cover.
There are many possibilities: for example, businesses that hold and process client data will need to think about having liability cover. This is to guard against any potential data breaches that could result in fines or lawsuits. This is just one example of the issues a policy could guard against. There are others, but it would depend on the nature and individual requirements of each business.
Knowing what exactly is required in a policy might not be the most straightforward of tasks and some insurers may have certain criteria that a business must meet in order to qualify for cover. An example of this is the requirement in some cases to provide a threat assessment, together with a requirement to show how best practices will be adhered to.
How working with a security partner can help
Taking on the responsibility of ensuring adequate cyber cover and of compliance with that insurance is no small undertaking. Getting such cyber essentials wrong could have costly consequences but bringing a professional team member on board to handle this might not always be a cost-effective solution. This is where working with a security partner can really help, providing the much-needed peace of mind that insurance policies are intended to provide.
Working with a security partner provides a multitude of benefits. Initially, obtaining the correct level of cover is the first thing, as they will be able to perform threat assessments to determine the requirements and meet the insurer’s criteria. They will also help with activities such as filling out insurance forms correctly and providing advice on how the business can ensure that they are complying with the policy terms. It’s extremely reassuring to know that if cyber attacks or ransom attacks do strike, the insurance will cover it.
A security partner will also be able to assist in the aftermath of any such unfortunate incident, helping to provide disaster recovery at a time when technical expertise will be in the utmost demand. Again, this expertise is often not found within smaller businesses but will be essential in getting a business back up and running with minimal losses and impact on the business and its clients.
We can help protect your business by assisting you in navigating the complex issues surrounding cyber insurance and compliance. For our expert advice and support, call Reflective IT today on 0207 317 4535 or email us at support@reflectiveit.com.
