Cyber risks come in many forms. Virus attacks, malware infestation, are direct methods while identity theft, data theft are some backhanded means. New approaches keep coming out, and older obsolete methods keep evolving as cyber security does. The only sure way to prevent unrepairable damage to your business is through cyber insurance, but that can get expensive as your business expands.
Insurers take into account several factors when writing cyber insurance policies. The goal is to provide sufficient indemnity for various circumstances such that claims on insurance don’t hurt the interests of the insurer and neither does it underinsure the customer. Among these factors are several that you can control. That’s how you can save on cyber insurance costs, by taking the initiative to prevent cyber attacks in the first place.
- In-house security installations recommended by insurers to fetch you discounts on premium
- Getting a cyber security expert to review all possible risks that could affect your business model
- Provisions for risk-minimization and data backup at your level, or handled by your in-house cyber security team
- Finding out about the terms and conditions for no-claims bonus as proposed by the cyber security underwriter
- Knowing if there is a provision to protect your no-claims bonus when you end up claiming a partial amount
- Flexibility of cyber insurance policy as old technology keeps getting replaced by new technology
- Compliance with the cyber security recommendations of the government (Cyber Information Sharing Partnership Program, Cyber Essentials Standard, Cyber Incident Response Scheme and reporting any incidents to the Action Fraud Team)
- Flexibility of premium payments in case of a financial crunch or if your business comes to a standstill
- Limit or cap on compensation paid in the event of a ‘full claim’ or ‘total loss ’
- Find out about the documentary evidence/paperwork required before requesting for cyber insurance claims
- Last but not the least, seek absolute clarity on what expenses are excluded from the cover so that you don’t bank on your cyber insurance claim blindly
The kind of cyber security coverage also plays a part in the determining your insurance premium.
Blanket Plan which is pre-planned with fixed coverage and claim limit is non-flexible and does not accommodate any add-ons or extensions regarding risks coverage and amount.
Flexible Plan which has an overall compensation limit and coverage also provides sub-limits from extensions/add-ons; in industries where technology changes rapidly, these sub-limits often add up to be half the sum insured for under the total limit of your cyber insurance policy.
Please note that making a cyber insurance claim as part of your policy’s sub-limit (over and above the original limit), often comes with certain time stipulations or monetary limits. For example, if you have a business loss compensation (as a result of network downtime) sub-limit over and above your current Network Security Policy, the insurer might state that only a minimum of 12 hours or 24 hours downtime will qualify for claims under this sub-limit.
Understanding everything related to cyber insurance is challenging and building a policy that overlooks exactly what your business needs can get frustrating. Unless you have someone on your side with the experience and insider information, insurance can become a burden rather than your safety net.
We at My Cybersurance have both and a team of experts who will be pleased to assist you at every juncture. Our representatives don’t just sell insurance but stay in touch long afterwards, especially during rewording of policy documents, claims filing and renewals. We offer documentation, prompt coverage, transparent pricing, interest-free payment options and no-claim bonuses. Call us today and find out what we can do just for you.