Cyber insurance is a necessity because the traditional insurance policies that cover cyber were not designed to handle 21st century threats. Most cyber policies were designed for third party exposures where your company causes a breach or sends a virus to another company and they sue you for damages. Today the vast majority of cyber events (90%+) tend to cause financial loss to the insured themselves which would need first party coverage - Joshua Shotts, Partner, Ironside Insurance Group, Boston, MA."
With increase in number and nature of cyber crimes and attendant increase in claims during 2020-2021, the cyber insurance marketplace is seeing significant upheaval. It has become hard and expensive to get cyber coverage. A large number of carriers offering cyber insurance have opted out of the marketplace, premiums have increased several folds, and coverage has been denied or reduced. Prior to underwriting a policy, all carriers conduct in-depth vulnerability assessments of the domain prior to underwriting. Premiums and coverage are then dependent of the vulnerabilities found.
How can we help your business with cyber insurance?
We help businesses during the entire, lengthy process of obtaining cyber insurance. We assist businesses with completion of the complex application process and address security issues that would affect premium and coverage. Our approach is to pre-emptively remediate issues which are likely to raise the premium and/or reduce coverage. Working closely with cyber insurance brokers, we gain understanding of cyber issues that affect the overall policy. Further, once you have obtained the coverage, we continue to monitor your cyber security posture to ensure that your business remains compliant with the policy requirements.