cyber insurance Archives - Page 2 of 2 - ABEX Affiliated Brokers Exchange Inc.

As more and more companies have experienced data breaches in recent years, the market for cyber insurance has grown exponentially. However, unlike other forms of insurance, cyber insurance is not a one-size-fits-all approach.

Most cyber policies are offered a la carte, allowing policyholders to negotiate terms and conditions and purchase the coverage that fits their needs.

The level of coverage your business needs can vary depending on your range of exposure, and it’s important to work with a broker who can tailor a policy to match your business’s requirements.

The following are items to keep in mind when building the ideal coverage:

1. Limits and sublimits

2. Retroactive coverage

3. Exclusions

4. Panel provisions

5. Consent provisions

6. Vendor acts and omissions

Cyber insurance is a relatively new form of coverage—one that will continue to evolve alongside emerging cyber threats. As such, cyber insurance requires organizations to be proactive in assessing their risks and ensuring that their insurance coverages are in line with their specific business practices and exposures.

For more information on the items discussed above and how they may impact your policy, contact your insurance broker today.

While it’s commonly thought that cyber breaches are only a threat for large companies, small and mid-size businesses are just as much at risk. This is especially true for manufacturers, as it is an industry norm for them to quickly adopt new, more efficient technologies—technologies that are often a target of cyber criminals.

While specific cyber exposures for manufacturers are vast, they typically include the following:

Data breaches. Almost every business stores sensitive information. For manufacturers, this typically includes personally identifiable information of employees and customers. Items like names, addresses and credit card information are all at risk.
Third-party damages. When an email sent from your server has a virus and crashes the system of a customer, you could be held liable for the damages.
Business interruption. A natural disaster, malicious activity or fire can cause physical damages that could result in data or code loss. Manufacturing businesses often require the use of computer systems, and a disaster can halt your ability to transmit data and lead to lost revenue.
Cyber extortion. Hackers can hijack websites, networks and stored data, denying access to you or your customers. They often demand money to restore your systems to working order. Because a variety of manufacturing projects are time sensitive, delays of any kind can wreak havoc on an organization’s bottom line.

All of the above exposures apply to businesses of all sizes and industries. A critical cyber incident could result in financial loss or severe reputational damages. What’s more, without cyber insurance, businesses are not adequately protected from cyber exposures.

Standard commercial policies are written to insure against injury or physical loss and will do little, if anything, to shield you from electronic damages and the associated costs they may incur. To protect your business, speak with your broker about cyber insurance today.