Is Cyber Insurance Worth It?

Your organization seems to have IT and cybersecurity all taken care of. You employee only the best to handle your data management and security after all. You have all of these safe measures in place, yet you still can't help but wonder if it's enough. You've been told a data breach is only a matter of when not if. How are you supposed to ever gain true peace of mind?

You've been wondering if you need an additional layer of protection. Protection that comes in the form of a cyber insurance policy. Insurance companies have been offering cyber liability policies in ever-increasing numbers. For good reason, the hackers have been winning.

Just in 2018, hackers stole half a billion records, and it's only going to get worse.

So, should you get a cyber insurance policy to help protect you when your organization experiences a data breach? Is it going to be worth it? That's the million dollar question.

In short, yes, it is worth it, but you need to make sure you do your due diligence. You need to find out exactly what is and isn't included in the policy. You'll want to ultimately speak to an underwriter or lawyer about the policy.

There are some cases where a cyber insurance policy may not payout. For example, if they find you were negligent and didn't have the proper security controls in place, they may not payout.

If they discover the ransomware or malware attack to be from a foreign country or state actor, they may not payout due to a 'War Exclusion' clause.

Also, some policies require you to hire a 3rd party to perform an expensive post-breach audit before they'll payout on your claim, which can be a huge obstacle for many organizations.

There's definitely a lot to be aware of and you want to do your homework when it comes to choosing the right cyber insurance policy.

There are other solutions to think about as well. After a data breach, it's crucial you get the assistance you need as fast as possible to minimize the damage done to your business. Breach Response or Incident Response Services like BreachMD can provide that assistance when you need it most.

Many times these services include up to $1M in coverage with no deductible.

This means you can get help when you need it most without the out of pocket expense.

It's more of a 'white-glove' service for when your organization experiences a data breach. You get access to a whole team of experts to get you back on track ASAP with as little damage as possible.