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Cyber Insurance
Imagine a malicious ransomware attack shutting down your tech platforms overnight, or hackers infiltrating your payment system and draining your bank account.
Today, every click carries a potential risk—and every business that depends on technology for communication, payments, or data storage is threatened by cyber attacks.
Cyber insurance is the ultimate solution to ensure financial security and business continuity in the face of evolving cyber threats.
eSpecialty Insurance has streamlined the coverage process. Our team provides you with multiple proposals from top competitive insurers, along with expertise to help evaluate exposures and choose the best combination of comprehensive coverage and price.
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How eSpecialty stands out
Common Cyber Exposures
Ransomware
Ransomware attacks start with malicious software encrypting critical information, causing systems to become inoperable and resulting in significant business disruption. A ransom payment is often demanded to unlock the data.
Cyber insurance will cover the ransom payment, but the most significant covered costs are typically those associated with business interruption.
Data Breach
Data Breaches include the inadvertent disclosure or theft of confidential information, and can be caused by employee error or malicious criminal activity. Certain breaches of confidential information can trigger a report to governmental agencies and a regulated response.
Cyber insurance policies are designed to cover direct costs associated with a breach, such as the expenses associated with forensic experts, legal advice, victim notification, and credit monitoring. Most policies also include protection from liability related to a data breach.
Deceptive Funds Theft
Deceptive Funds Theft continues to increase, as online payments and banking are used more frequently. If a criminal can get in, the money can get out.
Criminals will use various tactics to gain access to a system, typically using deceit to obtain user email credentials (phishing). Organizations that make repeated transfers of money or that send electronic payments or invoices are top targets.
Special Situations
Tech E&O
Technology Professionals Errors & Omissions (Tech E&O) is not the same as Cyber Insurance. However, Tech E&O policies may incorporate comprehensive cyber risk coverage because of the difficulty in distinguishing between a professional negligence claim and a cyber claim for a technology firm.
Technology firms, both developers and users of technology, should consider Tech E&O to protect their organization.
Buying or Selling a Business
Buying or selling a business that carries Cyber Insurance can be tricky based on the transaction structure and the specific Cyber Insurance policy. Often Cyber Insurance is terminated on the closing date, but this is not recommended.
A cyber incident could be in progress without anyone knowing for weeks or months (or longer), and lawsuits can be brought well after an incident. There are steps that be taken to mitigate this challenge, but no two transactions are the same.
Cyber Events
If you experience a cyber event, incident response services are dedicated insurance company teams available 24/7 to assist an insured in real-time. Services vary depending on the type of cyber incident and the insurer.
In the best case, an incident response team can resolve the situation right over the phone with a remote connection. However, a sophisticated attack will take time and require significant work on the part of experts to resolve. You should consider whether your insurer offers 24/7 incident response in addition to cyber insurance as part of your proposal evaluation.
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Cyber insurance security checklist
Risk management is a big part of minimizing potential exposures, and many steps can be taken to reduce cyber exposures. Some steps are obvious, and some require outside cyber security experts. The challenge is balancing the cost and time commitment of implementing risk management initiatives with the potential reduction in losses.
Train
Conduct cyber awareness and best practices trainings for all employees. Effective training is critical because 80-90% of all cyber incidents result from some level of human vulnerability.
Change Passwords
Institute regular password changes and implement multi-factor authentication where appropriate.
Update Systems
Update all systems and virus protection software frequently and install all software patches immediately.
Secure Payments
Establish payment procedures, including parallel confirmation processes, to eliminate fund transfer exposures.
Safeguard Confidential Information
Periodically review how confidential information is stored, accessed, and protected, and remove obsolete data and permissions.
Prepare Response
Develop an incident response plan that includes PR capabilities and regulatory compliance.
Assess Risks
Hire an expert to conduct a cyber security assessment, identifying and rectifying exposures for your specific organization.
Enlist 24/7 Support
Work with an expert to purchase comprehensive Cyber Insurance and ensure your cyber insurance provider offers professional 24/7 incident response services, rather than just claim reporting.
Note: Insurance policies are not all the same. Some policies are more comprehensive than others, and some policies provide broader coverage in specific areas. In addition, each insured may have different exposures and coverage needs. We encourage you to read your policy and consult with an insurance expert such as eSpecialty Insurance.