Cybersecurity Insurance Selection Tips for Your Business

Cyber insurance is not a new concept; however, it can be a challenge when businesses look out to purchase their first policy. The growing cyber threat landscape along with the changing technology makes this insurance type highly complex. Like any other insurance product, cyber risk insurance cannot undo an unfortunate business-related incident, however, it can safeguard you against its financial repercussions. In this article, we shall share cybersecurity insurance selection tips for your organization.

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What is Cyber Insurance and Its Importance?

Cyber insurance is typically a form of business insurance that helps organizations protect against potential losses caused due internet-based risks. Since different insurance players offer cyber risk insurance, their policies may differ in the scope of coverage and premium amounts depending on the plan that one opts for. Before we share the cybersecurity insurance selection tips, it is essential to know the benefits of buying one, in case your business is still uncovered.

- Protects against losses due to business disruption: In case of a cyber-attack, a cyber insurance policy can cover financial losses resulting from business downtime. It may also help compensate for costs to re-establish your systems to get them up and running again.

- Covers privacy breach costs: This policy helps cover expenses involved in managing privacy infringement claims, informing customers, and other related legal costs.

- Extortion defence: The threat of ransomware and cyber extortion is increasing; this insurance compensates the money paid as ransom or cyber extortion.

- Advice and expert support: Some cyber insurance policies may also provide cyber threat prevention support and improvements in IT systems.

Cybersecurity Insurance Selection Tips

Here we list some cybersecurity insurance selection tips to help you make the right buying decision:

Risk assessment

The first step before you buy cyber insurance and the extent of coverage is to understand the cyber risk exposure of your business. This will help determine the kind of cyber insurance needed, the level of coverage required etc. You may assess the risks by asking questions which include the type of data stored, the risk faced by industry peers, the probability of attack, compliance issues (if any), etc.

Policy Terms and Conditions

Before you sign the dotted line, it is always advisable to carefully read all the terms and conditions, exclusions, coverage options and other aspects of the policy. Reading and understanding these terms may help you realise if the plan fits well with the level of risks and objectives. Also, some terms and conditions may vary amongst various insurers. This makes a valid point for comparing different policies.

Due Diligence

One of the most important cybersecurity insurance selection tips includes updating the architecture and cyber hygiene of your system. Insurance underwriters usually check the measures taken by an organization to avoid any kind of cyber-attack. They take into consideration if the business uses unsupported versions of software or hardware, or the frequency of software and hardware update etc.

Risk v/s Premium

Like any other insurance, price or the premium play an important factor before buying the policy. Weighing the coverage needed, the risk you can afford, vis a vis the premium amount is very crucial. The premium amounts also depend on the existing security level and the steps taken to keep them in place.

Reviews and Industry Peers

Online reviews are the easiest ways to get first-hand knowledge about the product and how the users rate them. Before purchasing the insurance, have a look at the insurer's client base; it is important to determine certain facts. Try to consider: do they have clients from your industry, how are their after-sale services reviewed, are there any add-ons that are typically included, etc.?

Conclusion

The most dangerous thing about cyber threats is that they are not usually detected until they have occurred. Cyber insurance is no substitute for strong cybersecurity, the importance of having one is undeniable. Make sure you have a glance through the above-mentioned cybersecurity insurance selection tips before buying a policy.

Written By: PolicyBazaar - Updated: 22 November 2022
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4.3 October 11, 2022
Aarti Singh
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The representatives at PolicyBazaar were knowledgeable, patient and genuinely committed to helping me find the best insurance policy for my requirements. They took the time to answer all my questions and provide valuable guidance, ensuring that I had a thorough understanding of the coverage details and terms. THANKS.
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4.3 October 06, 2022
Amit
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After seeing a rise in cyber attacks in many of the companies, i decided to purchase a cyber insurance policy for my start up. I went on the Policy Bazaar website and learned about the coverage in detail and purchased it from their website only. It was quick and hassle-free purchase.
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4.5 October 04, 2022
Pinku
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We bought the contractual liability insurance from policybazaar and received the best overall package. The process was paperless as we applied for insurance online and the support was amazing.
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4.5 October 03, 2022
Aashish
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We thoroughly checked all the benefits and features and decided to buy a contractual liability policy from Policybazaar. It provides all the necessary features to safeguard our business against any loss.
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4.5 October 02, 2022
Nishant
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It was easy to buy insurance from Policybazaar and customer support was also amazing to clear all the doubts. Contractual liability insurance is essential for my business and I could not get a better deal than this.
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4.5 October 01, 2022
Puneet
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An ideal Contractual Liability Insurance policy purchased to protect our business that we ecounter in our everyday operations. Policybazaar offers a platform to compare multiple plans.
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4.5 September 30, 2022
Govind
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Great experience at Policybazaar. We did not know that buying Contractual Liability Insurance could be that easy. Also there is no broker and paperwork.
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4.8 September 29, 2022
Rinku
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I purchased Contractual Liability Insurance from Policybazaar and the coverage they provided is perfect to keep my hardware business safe various unforeseen instances.
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4.5 March 18, 2022
Ishan
Cloud Storage Cover
I wanted to purchase a cyber insurance policy could provide coverage for the data stored in cloud network. I went on the Policybazaar website and look up for plans that would provide me with this coverage. I compared different plans and in a matter of minutes i found the right cyber insurance plan that would fit my requirement.
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4.5 March 17, 2022
Anurag
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I was looking for a cyber insurance policy online. After looking for the insurance plan online I landed on the Policybazaar website. Trust me, the user interface of the website is so good that i was able to locate the cyber insurance plan and purchase it in not more than 10 minutes. Thanks Policybazaar.
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