| Cyber insurance covers a broad range of exposures, | | | | 3 Tips for Building Cyber Insurance Policies |
| including hacked computers, viruses, denial of service | | | | 1. Know your coverage. General liability insurance |
| attacks, and a bevy of other claims. With the right | | | | policies are designed to protect you if you are |
| policy, it can be extended to include trademark and | | | | negligent, but in order for coverage to be triggered, |
| copyright coverage. All firms that utilize IT | | | | they require property damage or bodily injury. Cyber |
| professionals should purchase a cyber insurance policy | | | | attacks typically cause money damages, but to not |
| that is tailored to meet the needs of their own | | | | necessarily physically harm your system. In order to |
| organization. | | | | be covered, you will need to purchase a policy that is |
| What is Cyber Insurance? | | | | specifically tailored to your company's exposures. |
| Cyber insurance can include a number of different | | | | 2. Maintain a strong infrastructure. Insurance companies |
| exposures from network security which protects | | | | will only agree to insure you if you take active steps to |
| against hackers, to claims that you were negligent in | | | | protect yourself. A formal IT audit of your systems will |
| meeting your responsibility to protect the data and | | | | increase your access to insurance coverage, and can |
| computers of your clients. The abuse of websites | | | | dramatically reduce premiums. The audit will cover a |
| has given rise to unanticipated numbers of copyright | | | | variety of internet security issues. |
| and trademark violations. | | | | 3. Build sound internet procedures that require frequent |
| Most states now have laws that require you to inform | | | | changes in passwords and that regulate what can be |
| your customers when their data has been | | | | placed on your site. Most copyright violations result |
| compromised on your system. Even if no further | | | | from employees posting material from other sites on |
| damage develops, the cost of notification typically | | | | the web. Make sure that they understand what is |
| approximates $8 per record. In other words, if a | | | | and is not acceptable. |
| hacker successfully penetrates your server housing | | | | A Business Investment |
| 150,000 customer records, the cost of notification could | | | | Since many companies will not report incidences of |
| be $1.2 million, even if you weren't negligent. | | | | data loss or denial of service attacks, it's difficult to |
| The availability of cyber insurance has expanded | | | | gauge the frequency of cyber insurance claims. You |
| rapidly in recent years. There are now over a dozen | | | | should use common sense and only cover your |
| insurance companies that offer well structured, | | | | company for claims that you can anticipate. |
| competitively priced cyber liability insurance policies. | | | | Still, buying cyber insurance is a necessity for |
| Be advised, however, that coverage is not standard. | | | | companies who deal extensively with technology. |
| A well qualified agent, schooled in the technical issues | | | | Assemble a plan that will cover you so that you can |
| surrounding cyber liability can help you navigate the | | | | run your business securely. |
| available coverages. | | | | |