With the lack of policy standardization and various exposures within the cyber insurance world, purchasing a cyber policy can be challenging. The first step in this process is to understand the risks your company is facing in the event of a breach, as well as your organization’s Total Cost of Risk (TCoR). After all, risk mitigation is more than just purchasing appropriate insurance.
This is recognized by a recent article in Risk Management magazine, “How to Buy Cyber Insurance.” The article provides 10 guidelines to follow when buying or renewing a policy and identifies the areas that require specific attention, as well as providing advice on negotiating a tailored policy. It suggests sticking to the basics, determining the appropriate limits and establishing your total potential liability exposure in the event of a breach. These are just a few of the key items addressed in the article. While these guidelines are useful, tackling proper risk mitigation without the advice of a professional may prove to be difficult.
The cyber market is complex and highly competitive, so it is beneficial to seek professional advice other than that of your Insurance Agent or broker. An independent Risk Management consultant can provide your firm’s senior leadership with a transparency on exposures and the implementation of risk transfer. Making sure your policy aligns with vendor indemnity agreements and contracts is a common oversight that can be uncovered during a risk review performed by a risk professional.
To learn more about the effectiveness of your cyber policy and a review of vendor contracts and indemnification agreements, contact Al Sica at 732.395.4251 or at [email protected].
