A Key To Your Risk Management Strategy: Cybersecurity Insurance

I went to a conference back in October and the keynote speaker was a former NSA Director. He made a brilliant point during his presentation that was as follows: There are two types of companies, one that has been breached and the other is the one that has been breached but doesn’t know it yet. This is a great point and ultimately underscores the need for a Risk Management Strategy for organizations of all sizes, not just the Fortune 500. 

One of the key components that an organization should look at includes Cybersecurity Insurance. Now this is not a one size fits all or a magic silver bullet that is going to cure all of your problems, however when purchased with a mature security program, cybersecurity insurance can be a welcome addition to your Risk Management Strategy. Here is a list of things that Cybersecurity Insurance is and is not, in no particular order:

• Cybersecurity Insurance is not a one size fits all approach. Each organization is different and therefore each policy needs to be tailored to that specific organization. What coverage might be beneficial to company A might not be beneficial to company B and so on.
• Cybersecurity Insurance gives you a good insight to your current IT Security Program. The application process for this type of insurance, while usually a self-assessment questionnaire, is very lengthy and asks a lot of questions about your current IT Security Program, what you are doing and what you aren’t doing.
• Cybersecurity Insurance will help cover your losses associated with a data breach, including credit monitoring, lawsuits, penalties, etc. Make sure the wording in your policy is clear and consistent based on your business needs. 
• Most Cyebersecurity Insurance policies want to see that you have completed a risk assessment. This will provide you with the opportunity to have an independent, third party assess your risk based on various Federal, State and Industry Regulations pertaining to your business (GLBA, HIPAA, PCI, etc.)

Contact us for more information on the benefits of implementing a Risk Management Strategy that incorporates cybersecurity insurance!