More and more companies are purchasing cyber insurance as the risks to the company’s businesses from the breach of their networks expand. More companies are also requiring that their vendors and contractors obtain cyber insurance to protect themselves from breaches caused by third parties. As the cyber insurance market place grows, it’s important for companies to know what they get with their cyber insurance policies to maximize the advantage of their purchase.
Cyber Insurance Policies And "Pre-loss" Services
As one example, many cyber companies provide “pre-loss” services as a part of their cyber insurance policy. The purpose of these services is to help companies find areas of potential vulnerability and fix those vulnerabilities before they cause a breach. It’s a good investment for the insurance company because these services can drastically reduce the possibility they will have to pay out on a claim.
Different Types of Pre-loss Services Offered by Insurance Carriers
The exact nature of pre-loss services will vary by cyber insurance carriers. Many offer cyber risk assessments and reviews. For example, they might offer to review and validate your incident response plan. Many of them offer phishing simulations to catch employees who are too lax with email security. Others will offer a consultation with a cyber security expert to address areas of weakness.
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Protective Software
Many insurance companies also offer protective software to customers as a part of their cyber insurance policies. This protective software can include up to date antivirus software and malware detection programs. It may also include programs to help protect your network from distributed denial of service attacks (DDoSs).
Online Education Tools
Additionally, almost all cyber insurance policies come with numerous online education tools that businesses can use to train themselves, and their staff on better cyber security practices. As many breaches are due to human error rather than technological vulnerability, engaging with these education tools is a vital way to help prevent carelessness from costing your company through a breach.
Why Companies Should Engage with the Pre-loss Services Provided
Still, many companies do not engage with the pre-loss services offered as a part of their cyber insurance policy. This may be due to the lack of awareness of the offerings available; it may be due to lack of time or staff to fully engage with the tools. However, the failure to prioritize cyber security can be incredibly costly in today’s world, and it is more than worthwhile to take the time to learn about the services provided as part of your cyber insurance policy.
Prevention is Cheaper Than Fixing a Breach
Ultimately, these tools are being provided because prevention is cheaper than fixing a breach after it happens. Companies will find it more than worth their while to engage with the pre-loss services offered as part of their cyber policies. It is a far preferable alternative to engaging with the carrier’s post-loss services, which will inevitably cost more in terms of time and staff resources.
