One of the key findings from The Graham Company’s 2015 Business Risk Survey is that nearly three quarters of the 300 senior business professionals we surveyed across the country are concerned about cyber security risks. And despite 61% of respondents saying they are prepared to deal with these cyber security risks, only 56% of them have completed an IT, network or cyber security audit within the past two years.
Why Business Leaders Are Concerned about Cyber Security
Cyber security risks are constantly changing, and as the business world gets closer to being paperless, securing digital information becomes even more important. The key is being aware of potential risk factors and taking the necessary precautions. Companies also need to be educated on the latest changes in technology and how these changes can work for or against them, from an insurance perspective. Since it’s not an easy job, working closely with an insurance broker will help you streamline the process.
How to Protect Your Business with a Cyber Security Insurance Policy
Traditional insurance policies are not designed to cover the exposures associated with data breaches. Any coverage you might find under a general liability, professional liability or crime or property policy is typically limited or simply accidental. And while some carriers might offer you an endorsement to expand the coverage of your policy, it won’t be nearly as comprehensive as buying a separate cyber liability policy.
Exposures covered by cyber liability policies can include first-party costs borne by the insured to notify affected individuals of a data breach, along with regulatory fines and penalties (subject to sub-limits). Information security and privacy liability for failure to protect personal or corporate information held on computers systems, smartphones, laptops, or paper files. These policies can also help pay for liability for your customers’ business interruption suffered because a hacker prevented their access to your website or systems, not to mention loss of business income if your website isn’t accessible. But the most important thing to keep in mind is that not all cyber liability policies are created equal. You have to customize it to fit your needs, and update the coverage as the insurance market changes and evolves. The best way to do this is by relying on your insurance broker’s expertise so you have the coverage you need, when you need it.
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