Data breaches are like lightning: one never knows when or where theyll strike, or how much damage they will cause. Given their unpredictable nature, data breaches make it a difficult task for any company to budget for. Cyber security insurance in Carmel can help offset these unexpected costs, but remember that it is not a substitute for implementing good data privacy and security practices. In addition, cyber insurance does not cover all expenses, such as diminished reputation or loss of customer confidence.
Insurance companies know how difficult the situation is for many small business owners, so take advantage of any value-added services offered. Some brokers and carriers offer complimentary value-added services to help reduce breach-related risks. This may include free consulting or legal advice from industry experts, access to a proprietary portal with privacy and security resources, educational webinars, and policy templates. Your organization should evaluate these services as part of the overall offering, which may actually help improve a companys risk profile as well as lower any insurance premiums.
Get preferred vendors approved before the policy is finalized
Some cyber security policies may require companies to use pre-approved vendors instead of their own service providers, such as legal counsel, when responding to a data breach. Such limitations can impact the quality of a response, for instance, the use of an out-of-the-country call center to manage the breach of sensitive medical data. We recommend companies negotiate the right to use favored vendors or select their own vendors before the contract is finalized.
One of your challenges may be to integrate the insurance claims process with internal breach response. A cyber insurance policy could change the way an organization internally manages data breach incidents. Post binding the policy, companies should understand how and when to involve their carrier if a data breach occurs. This may include updating any documented procedures, such as an incident response plan (IRP) with new roles and responsibilities, revised timeline and current contact information.
Evaluating the need for cyber coverage should not be designated to one person. Companies should discuss their data breach risks and risk management options cross-functionally, involving leaders from IT, risk management, privacy, compliance and legal departments. Working together, executives can more accurately quantify risks, evaluate options and develop a cost-benefit analysis to determine which cyber security insurance in Carmel is the right investment for their needs.