Cyber insurance is more important than ever due to the recent rapid increases in cybercrime activity. This includes the rise of COVID-19 scams, and a reported 600% global increase in phishing and malware attacks!
In light of that, here are some important questions to ask about any cyber insurance policy you are considering.
1. Does it include cyber extortion?
This refers to cover for ransomware attacks – where cyber criminals steal your data and demand a ransom (often in cryptocurrency) for its return. This can lead to extra costs – for negotiation experts for example.
2. What about cover for data recovery?
When data breaches occur the costs for recovering or replacing data and records can be considerable, so make sure to find out how this will be covered.
3. Will it cover both first and third party losses for breaches?
First-party losses may include business interruption, forensic investigations, legal costs and more. ‘Third-party losses’ refers to the losses incurred by other parties as a result of the data breach, which may include defamation, intellectual property infringements, and fines. Make sure to get the detail on what is covered.
4. How will my premiums be affected by claims?
Understanding how a claim could affect your premiums can help you determine whether to wear the cost in an event or to lodge a claim with your insurance provider.
5. What are the exclusions?
Knowing what is and isn’t included a policy can help you better understand your insurance. So make sure to get a detailed list of the exclusions and limits (including time limits) on the policy.
Speak with your local Reliance Partner to find out more.