Do you know what to expect when applying for cyber insurance? We do.
24/7/365. Cyber attacks can and do happen at all hours of the day and night. According to an article by Howard Solomon for IT World Canada in 2017, “The number of publicly-reported data breaches in Canada in the first six months of the year hit 59 — two more than the same period a year ago — according to a compilation released this week by a security vendor.”1
Furthermore, Solomon notes, “By comparison, there were 22 publicly-reported breaches in China and 19 in Russia. The United Kingdom was second on the list with 104 breaches. Canada was third.”2 When applying for cyber insurance there are many types of information that you’ll need to compile.
Applying for cyber insurance in Canada? Check out these 5 coverage application insights…
Complex cyber risk can add up to a complex insurance application process. A recent Coverage Insights by Zywave notes, “The application process for cyber insurance is both detailed and exhaustive. However, taking the proper steps before the application process for cyber insurance should reduce your data breach risk, making your organization more attractive to insurers and reducing your insurance costs overall.”3
“For cyber coverage to be effective, it requires a high level of due diligence on the part of prospective policyholders. To get the most out of your policy, consider the following best practices when applying for cyber insurance:
- Gather accurate data. Before the application process, it’s critical to speak with your information technology (IT) management team and any vendors you utilize in order to collect accurate data. It’s important to quantify the data on your network. Above all, get a solid estimate on how much personally identifiable information you have, including employee data.
- Be honest. To complete the application process properly and get the best possible policy, honesty is important. When working with your insurer, be clear about your organizational setup, security protocols and breach history. Not only will this help in securing adequate coverage, but it will also reduce the risk of your policy being voided if carriers find out you were dishonest during the underwriting process.
- Don’t wait. Even if your organization hasn’t taken the appropriate steps to reduce its cyber risk, going through the cyber insurance application process can help identify exposures. Your insurer can work with you to get the best coverage possible today, leaving room to negotiate down the line when your data security methods are stronger.
- Involve the right people. The application process for cyber insurance can be complicated, and it’s important to have key personnel help you. In order to complete a cyber liability insurance application, an organization may need to work with their risk managers, IT professionals, HR department, financial officers, board of directors, executives, privacy officers, marketing team and legal professionals.
- Work with experienced brokers. Because cyber insurance is relatively new, some brokers are more experienced in the underwriting process than others. To get the most out of your policy, work with a carrier who can accurately assess your exposures and offer your organization the best protection. More experienced brokers can even provide details on how similar companies in your industry handle cyber security.
Taking all the above into account will not only prepare you for the cyber insurance underwriting process, but it can also improve data security upfront.”4
Applying for cyber insurance? ALIGNED Insurance brokers are here to help.
If you are ready to apply for or renew your cyber insurance coverage, our experts are ready to walk you through the process. We understand the latest products and risk management techniques and can line up the best cyber liability coverage options. Our insurance brokers can help you get a cyber liability insurance quote that protects your bottom line.
Our insurance brokers can help you get a cyber insurance quote that delivers more value and options to your Canadian business.
1-2 Howard Solomon, IT World Canada: Canada third in reported data breaches so far this year
3-4 Adapted from Coverage Insights © 2017 Zywave, Inc. All rights reserved. This Coverage Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.
The Globe and Mail: Cyber attacks have hit 36 per cent of Canadian businesses, study says