Find a cyber insurance company with the right type of policy for your security risk
A red warning flashes on your security system dashboard. You’ve been hacked! The number of compromised accounts climbs as your security system determines how much information was stolen. What are you going to do? Are you covered for this moment or will you be paying out-of-pocket to clean up this mess?
No business owner wants to be in this position, but the risk is pressing as the United States saw a 10% increase in data breaches in 2021. It’s only a matter of time until your business is facing a data breach. Which brings us back to the question, what are you doing to do?
If you want to keep your business going after a cyber attack, you are going to need cyber liability insurance. This type of insurance can cover the loss of funds from digital theft and the cost of recovery after a cybersecurity breach, including the cost of forensic services, notification of the affected parties, and PR services.
To get this corporate cyber insurance, you need to find a cyber insurance company with the right type of policy for your security risk. There are many cybersecurity insurance companies you could choose from with different coverages and options for your cyber insurance. Cost will vary depending on the company as well.
So, you have a lot of decisions to make before you can get some company cyber insurance. But we can make your decision-making process easier. We have some valuable information on cyber insurance companies and the coverage they provide!
When choosing cyber insurance policies and companies, one of the first things to consider is what cyber risks and expenses a cyber insurance policy will not cover.
What does cyber insurance not cover? First, most policies don’t cover security system upgrades. If you want to increase your system’s security or purchase another protection layer of protection, you will have to pay for that expense yourself.
Second, cyber insurance may not cover future profit loss. For example, after a cyber attack, your business may have lost some reputability with several customers, so you lose some profit that you would have made from those customers. But cyber insurance will not cover that profit lost.
Finally, a policy probably won’t cover the expense of decreased valuation. If a cyber criminal steals some intellectual property from your business, which causes the overall value of your business to decrease, cyber insurance won’t cover the loss of business value.
Those are the major things that your insurance policy won’t cover, but the coverage will fluctuate based on the type of policy your company chooses. You may find a policy that covers data breaches but doesn’t cover cyber extortion or ransomware attacks on your data. Or you could come across an insurance policy that covers forensic services, PR services, and notification of the affected parties but doesn’t cover your loss of revenue from business interruption. Each policy is different.
The cyber insurance market also affects how much your insurance policy will cover. As more and more cyber attacks occur, insurance providers are becoming more selective about what risks they will cover. They are imposing sub-limits and exclusionary language for specific known vulnerabilities which can limit the coverage to 50% or less of the policy limit.
With these increasing policy limitations, you must look at an insurance policy carefully and determine what coverage limits it has. You need to find a policy that covers you enough in the event of a cyber attack.
How can you find a policy with enough coverage for your business? You must work with cyber insurance companies.
Cyber insurance companies (U.S.A. based ones at least) work much like any other insurance company you are familiar with. Your business will pay the insurance company a fee regularly, either monthly, every 6 months, or annually, for the policy of your choice. In turn, this insurance company will provide payouts detailed in your policy if your company experiences a cyber attack.
It is a relatively simple process of risk transfer. However, the trick is finding the right policy and the right insurance company for your business.
You can always do a quick google search for top cyber insurance companies 2021 or for the largest cyber insurance carriers, but that doesn’t guarantee that any of those companies will have the right policy to cover your specific cyber risk. The largest cyber insurance carrier may only have policies designed for enterprise companies and some of the top cyber insurance companies may not even want to give you a policy because of your high cyber risk.
You have to do a detailed search through many different types of insurance companies to discover the policy that fits your business. In a panel discussion with Trava Security, Josh Anderson, Chief Information Officer at Rea & Associate, Inc., recommends that you consider at least two or three policy options from different companies. You should also get a variety of perspectives and consider how the cyber insurance market is changing.
To help with your search for a cyber insurance company, you could work with a cyber broker. Cyber brokers can guide your company through the insurance process by providing expert advice and finding specialized lines of coverage to meet your specific needs. Cyber brokers are not affiliated with a particular insurance agency, like insurance agents, so they’ll help you find an insurance policy amongst several different companies.
The top cyber insurance brokers will know the best markets for specific risks and will have relationships with many different insurance companies and cybersecurity vendors to help with risk management services.
Or you could partner with a company like Trava that works similar to a broker and can pair you with the best insurance policy for your risk. They can make your insurance search much easier, especially as the cyber insurance market grows more difficult to traverse.
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Whether you decided to work with a broker or not, you will probably come across certain popular insurance companies in your search for a cyber insurance policy. It’s good to have a base knowledge of what these common cyber insurance companies offer, so you can find the right insurance solution for your specific risk.
Below, we have a list of cyber insurance companies and some of their offerings so you can start deciding what insurance company provides the best coverage for your business.
After looking at just some of these options, you might be overwhelmed. There are many cyber insurance companies to choose from—all with different policy coverages. To add to your difficulties, the cyber market is getting harder to enter as companies limit their capacity and coverage.
We provide a wide range of tools to assess your cyber risk and determine where your security is lacking. We also have mitigation tools that can help you fix those shortcomings. Once your network is secure, we can pair you with an insurance policy that will cover the remainder of your cyber risk (probably at a lower premium than you would’ve had before!)
Don’t get lost in the long list of cyber insurance companies. Contact Trava today and let us guide you to the right insurance company for you!
Lauver, Madeline. “U.S. Data Breach Volume Increased 10% in 2021.” Security Magazine. February 15, 2022. https://www.securitymagazine.com/articles/97089-us-data-breach-volume-increased-10-in-2021#:~:text=There%20were%202%2C932%20publicly%20reported,Risk%20Based%20Security%20and%20Flashpoint.
Farley, John. “The Cyber Insurance Market Struggles With Contiuned Hardening Market Conditions.” Gallagher, January 2022. https://www.ajg.com/us/-/media/files/gallagher/us/cyber-insurance-market-conditions-january2022.pdf.
Dunn, Ryan. “The Evolution of Cyber Insurance, Part 2.” Trava Security. https://www.travasecurity.com/resources/the-evolution-of-cyber-insurance-part-2.