Last Updated on July 7, 2022
There’s no denying that cybersecurity risks in the workplace have increased exponentially in recent years. Organizations are more vulnerable than ever, from the pandemic causing a shift to remote work to Russia’s invasion of Ukraine. Worse, cyber attackers are constantly innovating.
This growing threat is why it’s crucial to understand how best to protect yourself and your business from potential cybersecurity attacks.
We spoke with Eric Jesse, Partner at Lowenstein Sandler LLP, to gain an attorney’s perspective on the importance of cyber liability insurance. In addition, Eric talks about protecting your company as a policyholder in today’s changing landscape.
Hiring a knowledgeable attorney is vital for purchasing cyber liability insurance – here’s why
Investing in cyber liability insurance is instrumental in protecting your company. Even if you have a rock-solid cybersecurity program, you must insure your organization to protect against the potential attacks or incidents you would most likely face.
Cyber threats are becoming ever more intelligent and commonplace. While cyber liability insurance was once considered an option, it’s now necessary to operate a successful business.
But just like insuring your car or home, there are many different types of insurance to choose from. Eric explains, “I describe cyber insurance as the Wild West because the risks, their severity, and they’re always changing. And the insurers have to try and keep up with that.”
Hiring an attorney knowledgeable in cyber liability insurance is an investment in your organization’s safety. These professionals will help you to completely understand the terms and protections offered by your insurance coverage.
Getting caught up and confused in the legal jargon can be easy. However, working with a practiced attorney can help you choose the right insurance plan and understand the implications of each clause.
Reduce premiums and improve security with these strategies
While it’s necessary to purchase cyber liability insurance and build a strong security foundation, it can seem like a serious bullet to bite with high premiums that are rising even faster than the growing cybersecurity threat.
But you can do things to improve your business’s cybersecurity and reduce your insurance premiums.
Strong organizational cybersecurity culture is the key to unlocking lower insurance rates. According to Eric, “Insurers really want to probe and understand what cybersecurity systems a company has in place; they want to know what’s being done to train employees to address or prevent cyber attacks.”
Companies that employ more robust cybersecurity measures are at a lower risk for serious cyber attacks: the lower the risk, the more potential to reduce the premium of cyber liability insurance.
Cybersecurity training and awareness are becoming more critical, particularly with much of the world working from home. You can ensure your premiums stay low by providing every employee with cyber safety training and continuously updating policies. In addition, keep employees educated about new trends in ransomware and phishing, and create an official system in which you outline how that information is shared.
A solid cybersecurity culture in which a company provides adequate training, awareness, and protection is vital for attaining affordable insurance rates.
Make sure you’re really covered for all types of cyber incidents
Cyber liability insurance is a necessary investment in today’s digital world. First, however, you must ensure that you have all your bases covered.
Different policies insure against various incidents. Therefore, it’s necessary to figure out which policy best serves your company and whether a single policy will protect you against all major risks. Sometimes, you may have to invest in various policies to protect your organization adequately.
“The reason you need to make sure that you have that panoply of coverage is that a cyber incident can implicate multiple different types of coverage,” Jesse explains.
Likewise, cyber incidents can be complicated. For example, a singular attack may include various risks and circumstances and therefore only partially covered by an insurance policy.
The complicated nature of cybersecurity and liability only increases the importance of hiring a knowledgeable attorney when choosing policies, switching insurance, and minimizing your premiums.
In conclusion, here’s what you need to protect your organization
It’s no secret that cyber liability insurance premiums are on the rise. But so are cyber attacks. Purchasing the right insurance policies to protect your business can save your organization in the event of an attack.
Finding the right insurance doesn’t have to be a struggle.
Make sure you hire an attorney that is knowledgeable in cyber liability insurance. Set aside plenty of time for discussing exactly what you need in a plan. Compare packages with your attorney to ensure your investment is sound, and your chosen coverage will protect you in the event of an incident.
Finally, ensure your organization has a substantial cybersecurity culture, with employee education, necessary training and software, and a continuously evolving security posture.