From the Desk of Wilson Henry, FifthWall Solutions, Cyber Insurance Specialist
Q: What’s Important about Cyber at the End of the Day?
A: Comprehensive cyber insurance is crucial for businesses because it provides full financial protection against cyber threats. Cyber attacks come in many different shapes and sizes.
When businesses think about cyber attacks, most minds turn to data breaches, ransomware attacks, and system disruptions. Comprehensive policies absolutely cover these and the costs associated with investigating a breach, notifying affected parties, restoring data, legal fees, and potential fines. But what businesses usually do not think about a cyber attack is the fallout or aftermath of the attack.
Comprehensive policies mitigate the financial impact of reputational damage and revenue loss resulting from a cyber incident. This offers businesses peace of mind that they have the backstop of the loss of contracts and clients, which is usually not provided in a warranty or endorsement. Limits of cyber insurance coverage are the most important thing to consider when looking for a policy to cover a business.
The daily rising costs associated with a cyberattack can cripple a company if they do not have adequate coverage, like an endorsement policy that will only cover up to a limit of $100k. Most of that coverage will be used on the first day of a catastrophic event– leaving a business to pay out of pocket going forward.
Another thing that a comprehensive policy helps with is that the carrier will bring in approved vendors on retainer. These will include lawyers, ransom negotiators, forensic teams, and public relations to help you through the incident. Coverage like warranties and endorsements will only pay you back for these services. I wouldn’t want to hire and vet these services during a cyber incident if you ask me.
Where do you start? Reach out to FifthWall Solutions; our team is always here to help you break down the good and the bad.
Check out our recent blog, “Not all Cyber Insurance is Created Equal.”
