Buying Cyber Insurance Might Take Up to 6 Months: Here’s Why
If you’re a business owner, there’s a good chance you’ve heard about cyber insurance and the importance of having it. But what you might not know is that buying cyber insurance can be a long and complicated process. Sometimes this process might take even several months before you can close the deal.
In this blog post, we’ll discuss some of the reasons why buying cyber insurance can take so long. We’ll also provide tips for making the process as smooth as possible.
What is cyber insurance?
Cyber insurance is a type of insurance that helps protect businesses from losses due to cyber-attacks. It can cover things like data breaches, hacking, and other types of cybercrime.
Some businesses might think that they don’t need cyber insurance because they already have other types of insurance, like general liability or property insurance. But these policies usually don’t cover losses due to cyber-attacks. That’s why it’s important to have both types of insurance.
Here are some tips for making the process of buying cyber insurance as smooth as possible:
- Work with an experienced broker who understands the ins and outs of cyber insurance.
- Get quotes from multiple insurance companies.
- Make sure you understand what’s covered in the policy.
- Have all of your ducks in a row before you start the process. This means having things like a list of assets and cyber security practices.
By following these tips, you can make the process of buying cyber insurance much smoother.
What should you be on the lookout for ?
In order to get the best protection for your business, you need to make sure that you’re getting a policy that covers all of the potential risks. Here are some of the things you should look for in a cyber insurance policy:
- Coverage for data breaches: This is one of the most common types of cyber-attacks, and it can be very costly to deal with. Make sure the policy you’re considering covers data breaches.
- Coverage for hacking: Another common type of cyber-attack, hacking can result in the loss of sensitive data. Again, you’ll want to make sure that your policy covers this.
- Coverage for Denial of Service attacks: This type of attack can prevent your customers from accessing your website or using your services. While it might not result in the loss of data, it can still be very costly to deal with. Make sure your policy covers Denial of Service attacks.
- Coverage for business interruption: If your business is interrupted due to a cyber-attack, you’ll want to make sure that you’re covered. This can help you keep your business afloat while you deal with the aftermath of the attack.
- Coverage for cyber extortion: This is a type of attack where the attacker threatens to release sensitive data unless you pay them. Make sure your policy covers this so that you’re protected in the event of an attack.
These are just some of the things you should look for in a cyber insurance policy. By making sure that your policy covers all of these risks, you can be sure that your business is protected in the event of a cyber-attack.
When should you buy cyber insurance?
The best time to buy cyber insurance is before you suffer a loss. That way, you can be sure that your business is protected. However, you can also buy cyber insurance after you’ve suffered a loss. In this case, it can help you cover the costs of recovery.
No matter when you buy it, cyber insurance is an important part of protecting your business. By understanding the risks and getting the right coverage, you can protect your business from the potentially devastating consequences of a cyber-attack.
Why does it take so long to purchase cyber insurance?
One of the reasons why buying cyber insurance can take so long is because there are a lot of different factors that go into determining the premium. There are also a lot of different factors that go into determining the premium. Insurance companies will look at things like the type of business, the size of the business, and the industry. They’ll also look at the company’s cyber security practices.
A cyber insurance form asks for a lot of different information. This is because the insurance company needs to understand the risks that your business faces. They also need to understand your cyber security practices. The more information you can provide, the better. Sometimes, cyber insurers require certain controls. For example, they might require you to have a certain type of firewall or multi-factor authentication.
Furthermore, cyber insurers started running scans and using external tools and companies like BitSight. BitSight is a company that rates the cyber security of organizations on a scale from 250 to 900. But those tools only asses an external digital footprint. So, if an insurance company sees that your BitSight score is low, they’ll be more likely to charge you a higher premium or ask you further clarifications.
It’s important to remember that cyber insurance is a relatively new product. As such, the insurance companies are still trying to figure out the best way to price it. This is also another reason why it can take so long to purchase a policy. This process can be time-consuming, but it’s important to get it right. After all, cyber insurance is designed to protect your business from potentially devastating losses.
What are the common cyber insurance exclusions?
While cyber insurance can be a great way risk management tool, there are some things that it won’t cover. Here are some of the most common exclusions:
- Poor security practices: If your business has poor security practices, your policy might not cover you. Make sure you have robust security measures in place before you purchase a policy.
- Acts of war: If your business is the victim of an act of war, your policy probably won’t cover you.
- Employee fraud: If an employee commits fraud, your policy might not cover you.
- Intentional acts: If you intentionally commit a cyber-attack, your policy probably won’t cover you.
These are just some of the most common exclusions.
No matter when you buy cyber insurance, it’s important to make sure that you’re getting the right policy for your business. Cyber insurance is an important tool for protecting your business, so it’s worth taking the time to get it right. The process of purchasing cyber insurance is a great opportunity to assess your security gaps and take this as an opportunity to improve.
If you’re shopping for cyber insurance, be sure to check out our website, and proceed with an initial assessment, look for insurance forms, and reduce the painful process:
By Magda Chelly
Chief Security Officer | TEDx Speaker | Author & Keynote Speaker | IFSEC Global Top 20 Cybersecurity Influencer | Entrepreneur | PhD, S-CISO, CISSP, Cert SCI (General Insurance)
Find out on magda-on-cyber.com
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