Biz 417: Cybersecurity insurance sounds nebulous, but it’s becoming a must in 2018. What are the basics every business owner should know?
Aaron Sharpe: Many cyber exposures exist and threaten business owners. That includes funds transfer fraud, stolen personally identifiable information, system attacks—the list goes on. We offer various cyber coverage options to protect our business owner partners. [Editor’s note: Funds transfer fraud refers to money directly lost due to fraudulent activity, such as forgery.]
Biz: It sounds like there are a lot of different kinds of cybercrime. How can a company assess its individual cybersecurity needs?
AS: Cyber insurance products can be designed to cover only certain exposures, or [the plans] can be more robust to cover a variety of risks. Although a standardized cyber policy is not available, some components of a cyber policy can include cyber liability coverage to cover the business in the event of a computer attack, data compromise protection to cover the business… and identity recovery to cover the personal identities of business owners in the event of the loss of personal information.
Biz: Is cyber insurance necessary for all businesses?
AS: Because of the increasing frequency and severity of data-related incidents, criminal hacking organizations, increasing interconnectivity and regulation of data security, few business owners can escape the exposures and hazards related to [cybercrime].
Biz: What are your recommendations for a first-time cybersecurity insurance shopper?
AS: The technical support that accompanies a cyber policy also provides expertise to navigate the waters when a loss occurs. Our agency represents a large portfolio of insurance providers and products, so we can assess each business and create a cyber policy for each operation. Although more and more information breaches and cyber claims are occurring, cyber coverage remains affordable and should be reviewed with your insurance professional.