3 Ways for Owners to Reduce Cybersecurity Insurance Costs

Cybersecurity policies are an increasingly necessary part of any business’s insurance portfolio as commerce is increasingly focused online. Businesses that seek to ensure their policies are as effective as possible need to follow some basic steps.

Cybersecurity policies as are diverse and varied as the ways people use networked services in their businesses. A business that uses cloud services to host their data has different cybersecurity insurance needs than a company that uses its own servers, as just one example. Businesses need to be alert to ensure that their insurance policies match their company practices and exposures.

Many cybersecurity coverages involve sub-limits on specific types of cybersecurity losses, such as data breach notification. There are also a variety of coverage enhancements insured businesses can request that would provide truly important coverages for nominal premiums. One such coverage is network extortion. It is important for the broker and insured business to fight against the inclusion of contractual liability exclusions. Businesses also need to be alert to the coverage implications that can arise from cybersecurity breaches from mobile devices.

How To Get The Best Quote:

1. First and foremost, an insured seeking to maximize their recovery from a cybersecurity policy will need to purchase their coverage from someone who is truly versed in the coverage nuances by the many cyber policies on the market. The correct contract is the most important way to maximize recovery.
2. Regardless of insurance coverage, it is critical to minimize the potential for loss by staying up to date with the most recent security procedures, whether this means applying two-step authentication procedures, installation of anti-malware code, or other developments in cybersecurity.
3. It also means having a clear protocol established in the event of a cybersecurity breach to ensure a quick and decisive response aimed at minimizing losses and costs. By having practices in place before a loss, a company can activate those disaster measures quickly at the time of a loss and stretch their coverage limits. One example would be data breach services. Having chosen preferred vendors and programs in place ahead of time might allow that coverage limit to protect a greater number of parties for notification services.

Businesses that experience a cyber breach should notify their insurance providers immediately. Doing so is the best way to ensure the business can recover for its loss. It is also advised that businesses should seek recovery from all potential insurance policies they have. Some losses from the breach may be covered under other policies that a company has and this is a critical service that should be provided by your broker.