
7 questions to ask a potential cybersecurity insurance provider.
7 questions to ask a potential cybersecurity insurance provider.
What is the cost ?
First, you need to know the cost of insurance. This step involves planning and comparing the costs of different suppliers. By doing so, you can make the best choice for your business needs.
A smart way to reduce these types of costs would be to see what cybersecurity measures you can implement internally to save money.
What incidents will the insurance cover?
You will also need to know exactly what cyber insurance will cover. The best suggestion would be to have your legal team go over all the details with a fine-tooth comb.
Most cyber risk insurance policies will cover first party and third party damages. However, it is always best to review the different policies carefully so that you can get the coverage your business needs.
Does the supplier know your industry?
Depending on the industry, different rules may apply as some companies have very specific data compliance regulations.
As a business, there is no point in going for the most affordable or cheapest option if the provider does not have enough knowledge or experience to meet your specific needs. Make sure your potential insurer understands your company’s specific data processing needs.
Are there specific incidents that are excluded?
Sometimes there is fine print that needs special attention. Missing certain details could land your business in hot water. So, be sure to check if there are any incidents that cyber risk insurance does not cover.
For example, some insurance providers do not cover business practices that pose an avoidable risk. This may include your company’s BYOD (Bring Your Own Device) policy. If a breach occurs due to an employee device, insurance may not cover it.
So be sure to clarify exactly what the cyber insurance provider will and will not cover.
What audit or compliance obligations will you need to comply with?
Regular compliance reviews will most likely be required. These help keep policies up to date and relevant.
You will need to check the specifications of what your potential supplier will need and the cost of these audits. Also check if you can ask an independent auditor for this, as this is the best way to ensure transparency.
What is the response time in the event of a breach?
You will need to act quickly when you identify a violation. Likewise, your insurer must also react as quickly as possible. Be sure to ask each insurer what their response commitment is. If it’s more than 24 hours, it may be best to consider another provider.
Can the provider change coverage due to the changing nature of cyberattacks?
Technology is evolving at a very rapid pace and your provider of choice will need to take this into account. Agility and adaptability are essential to ensure that when new risks emerge, your provider is able to adjust and adapt.
It will be a big blow to a company if it is in the middle of a breach and discovers that its supplier does not cover a specific incident because it was not taken into account when developing the policy. politics.