Cyber attacks continue to pose a real threat to businesses and insurance is evolving to offer solutions.
Here are 5 ways insurance is evolving:
- Cyber exclusions
As cyber attacks continue to increase in frequency, many insurance companies are adding exclusions for cyber exposures to their property and liability policies. Without a standalone cyber policy, many businesses have, or will soon experience, a gap in their coverage. And with the average cost of a single cyber incident reaching over $370,000, this is an exposure small business cannot afford to ignore.
- Remote Work
Work-from-home and hybrid-work-from-home options continue to grow in popularity as an employment perk. However, these telework arrangements have led to an increase in cyber incidents as cyber criminals target the often less secure remote systems – typically through phishing tactics - as company cyber policies are often not strictly observed on home computers. Companies offering telework opportunities may soon see underwriters asking for details to be included in their risk assessments.
- Supply-Chain Attacks
Even if your company is not directly attacked by a cybercriminal, one of the vendors you rely on to do business could be. Companies within the supply chain are increasingly being targeted by cyber criminals due to the wide range of businesses that rely on their services.
Cyber Liability generally provides loss of income coverage for your business in the event an IT service provider you depend on - such as software-as-a-service (SaaS) providers and cloud service providers - has an unplanned network disruption or has their security compromised.
Non-IT service providers are also increasingly being targeted by cybercriminals. An Outsourced (non-IT) provider network disruption enhancement is typically needed to extend cyber liability coverage to provide business interruption coverage in the event of an unplanned outage on the computer system of an outsourced, non-IT, provider with whom you do business.
- Ransomware
No one is safe from a ransomware attack. The increasing frequency and ransom being demanded by these cybercriminals has caused many insurance carriers to begin to exclude ransomware extortion payments from their policies. This is a direct result of criminals learning a companies coverage limits and demanding that exact sum.
- Regulatory ramifications
The way companies handle sensitive data is drawing the attention of international, federal, and state governments resulting in more legislation. This is increasing employer’s regulatory exposure when it comes to data protection.
If you have questions or concerns about your business's cyber insurance coverage, please contact us today.