On June 15, Switchfast presented a webinar all about cybersecurity insurance. Hosted by Trevor Pachis from American Family Insurance, the presentation walked through an explanation of this form of insurance, the threats it covers and how you can develop a plan specifically for your business.
“The main takeaway I want everyone to have today,” Pachis said, “is to find a trusted adviser with experience designing an insurance program specific to your insurance needs and your exposures.”
He went on to note, “If you were faced with a lawsuit alleging fault in the breach of customer data, would your current attorney be able to handle the defense? Most of us have attorneys for our businesses – sure – but can they handle a cybersecurity defense? Could you afford a class action lawsuit or a judgment, and stay in business? Expertise is needed in all stages of cyber-readiness. It’s needed in prevention, remediation and especially in defense.”
Below are some more insights from this webinar, including what you can expect when it comes to pricing.
How much does it cost?
Cybersecurity insurance is not as uniform as other commercial products like workers compensation, property or general liability, but there are some rating factors that are pretty common in the marketplace today. The factors impact how much your organization will have to pay for coverage.
Gross revenue of an organization – including E-commerce sales
Packaging of multiple insurance plans (like liability and property) with cybersecurity insurance for more affordable pricing
Organizations with higher revenue or who handle sensitive data often have extensive underwriting interviews
It’s important to note that cyber insurance is subjective to carrier preferences, meaning your experience will vary depending on what provider you work with. Some may have different pricing structures. However, by packaging this plan with other forms of insurance, as outlined above, the cost of your plan can be reduced. This will also help with the settlements of claims while providing you with additional needed protection.
Keep in mind most businesses only have to go through a brief questionnaire, making the insurance affordable and fairly easy to obtain.
What do insurance companies look for?
Some of the considerations that insurance companies go through to determine the price of coverage are listed here:
Insured has a website for informational purposes only
Insured conducts business, at least partially, over their website and/or store credit card numbers as well as other fairly sensitive information
Insured will either conduct all of their business through their website or store highly sensitive information such as social security numbers or have some combination of both
Insureds who harbor substantial personally identifiable information or protected health information
As you put more information on your websites and increase the amount of business you conduct via the web, the risk of cyber attacks grows from low, to medium and then to very high. The highest exposures are for those organizations who handle a large amount of personal customer or patient information – like hospitals or financial institutions. To craft a plan for these organizations, extensive underwriting is required to make sure they are protected.
For more insights from this webinar and to stay up-to-date on upcoming Switchfast events, click here.
Written by Tim Schmitt.