7 steps to buying cyber security insurance

Buying cyber security insurance can be a daunting task. A typical insurance policy is over 50 pages, and filled with complicated jargon. However, buying insurance does not have to be complicated. Follow these 7 simple steps to buy cyber insurance for your business.

1. Understand your true exposures. Before buying any insurance policy, you should know exactly which risks you should be most worried about. With that in mind, start looking for an insurance policy that will protect your business for those risks.

2. Find ways to reduce your exposures. For each of your major exposures, see if there are solutions to limit your risk (e.g., encrypting your drives, installing firewalls). This will both reduce the risk of an attack on your company, but also potentially reduce the insurance premium you pay.

3. Select your limits. Determine the worst case loss scenario for your business, and estimate the cost of recovering from that incident. That loss cost should be your starting point for determine the limit of liability to purchase.

4. Review your existing insurance policies. Check exactly which coverages you have today, and identify the gap to what you need. Some Errors & Omissions policies include some level of cyber coverage, so may have already have some coverage.

5. Shop around. Once you know what you need, reach out to insurance providers that have experience with cyber insurance. Ask them to describe the policy and coverages in simple terms to make sure you understand what is included. You may be able to reduce the limits of, or exclude entirely, unnecessary coverages to secure a better price. Also make sure you review all the sub-limits, as each coverage on your policy could have a different limit.

6. Check the exclusions. The list of exclusions is one of the most important things to review in an insurance policy. If one of your major exposures is listed as an exclusion, make sure you have it removed or look for another policy. There is no point in purchasing an insurance policy that excludes one of your biggest risk exposures.

7. Ask for retro-active coverage. As with many professional lines insurance policies, you may be able to get coverage retroactively to a past date. This is important because cyber-attacks could go unnoticed for a long period of time. If you do not have retroactive coverage, your claim could be denied if it did not occur during the policy period.

About Zensurance

Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.

If you have specific questions about your business insurance, please visit us as www.zensurance.ca or email us at info@zensurance.ca and we will find the answers for you.

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