“Insurers and businesses must be partners in mitigating the risks posed by cyberattacks,” said Sean Kevelighan, CEO, Triple-I. “Governments must also play an important role in mitigating cyber risks through law enforcement and diplomacy.” Some of the most significant cyberattacks in recent years have been attributed to foreign security actors. Russia and China.
Unfortunately, following a data breach, the majority of small and medium-sized businesses incorrectly assume that all losses are covered by their property and liability insurance policies, according to Risk & Insurance which, like Triple-I, is affiliated with The Institutes. Such confusion can lead to unexpected gaps in insurance coverage for businesses.
What cyber insurance covers
Even though ransomware (instances in which a company is asked to pay for the return of its stolen data) continues to increase in severity, cost and volume, some recent lessons can help companies improve their cybersecurity strategies. Purchasing cyber insurance can reduce the cost to a business in the event of a data breach involving sensitive information by covering damages that general liability insurance cannot cover, including:
- Legal fees
- Repair digital infrastructure
- Restoration of personal customer information
- Proprietary data recovery
Insurers are partners in risk mitigation
Resilience and pre-emptive mitigation should be emphasized, and insurers are well placed to serve not only as financial first responders, but also as partners in managing these evolving risks. Companies also have a role to play in this regard.
“The first line of defense is to create a robust cybersecurity system, train employees to identify a potential attack, encrypt company data, and enable virus protection. With only half of companies signaling a consistent encryption strategyand the cost of data breaches keep going uporganizations need to do more to protect themselves and their customers,” according to a Triple-I Blog.
Articles: Cyber Liability Risks
Blogs: “Perfect Storm” by Cyber Insurance; “Silent” Echoes of 9/11 in Today’s Cybersecurity Risk Management; Brokers and policyholders need greater clarity on cyber coverage; Cyber risk is becoming real and requires new approaches
Short: Cyber: Risk Status
The Triple-I has an extensive library of instructional videos on its Youtube channel.
SOURCE Insurance Information Institute