• February 26, 2024

Decoding Cyber Insurance

The range of cyber insurance policies on the market today can be confusing; many offer different covers, while wordings may vary and conditions differ from policy to policy. Techinsure can help you understand the key points and covers within a policy and highlight some sections we believe should be included in all cyber insurance policies.

Six considerations to bear in mind when choosing cyber liability insurance

Incident Response (The 24/7 helpline typically offered by a cyber insurer). Following extensive research in the market, we discovered that some cyber insurance policies do not include a 24/7 helpline as part of their service. This support is essential as cyber-attacks often occur during holidays, weekends, or outside of work. Insurers who offer an incident response helpline can quickly mitigate your losses and the potential interruption to your business by appointing the necessary people to assist you as soon as possible rather than responding only during opening hours.
Operator Error (also known as employee negligence.) This cover protects you if an employee accidentally erases, destroys or modifies data. However, some cyber insurance providers exclude this cover, so checking that your policy contains it is prudent. A 2022 Verizon report said the human element is a critical driver in 82% of data breaches.
Business Interruption. A standard business interruption policy will generally not cover you for cyber-related claims. However, you can cover cyber business interruption on a cyber insurance policy, enabling you to claim for lost revenue following a cyber-attack.
Dependent Business Interruption. This cover indemnifies you against loss of income or additional costs incurred if a hacker targets the systems of one of your technology or outsourced service providers, such as a cloud provider or payroll company.
Network. In the event of a cyber-attack, your policy must cover all internal and external computer networks. If it only covers your internal network, the insurer may not cover a loss directed at the cloud provider or data centre you use.
Business Description. An up-to-date business description is essential for all policies. It needs to reflect all your current and projected activities accurately for the next 12 months to ensure you're covered in the event of an incident.

While it's tempting to leave reviewing your insurance details for another year, you must keep them up to date and accurate. Regular conversations with your insurance broker can ensure prompt, straightforward updates and renewals and save you valuable time maintaining this important information.