Do You Have Enough Cyber Coverage? Protect Your Business From Exposure
It’s more important than ever to purchase cyber liability insurance and consider increasing your limits.
The cyber insurance market is changing rapidly in response to an alarming increase in high-profile ransomware and vendor incidents. According to the Coveware Quarterly Ransomware Report, more than 70 percent of victims were companies with less than 1,000 employees, with the median at 234. Over the past months, we’ve seen an average premium increase of 30 percent to 60 percent irrespective of organizations’ industry or size.
So, what should you do? Immediately, contact your broker to discuss the next steps. Every day new vulnerabilities are being exploited, vendors who store your data are hacked, exposing your organization and assets to risk. If you currently have coverage, you should consider higher limits now or at renewal. If you currently have coverage, you should consider higher limits now or at renewal.
In order to maintain cyber liability as a viable product, insurance carriers have:
- Implement rate increases which average between 30 percent to 60 percent
- Increased retentions
- Sublimited cyber extortion or other cyber liability coverages
- Add exclusionary endorsements for SolarWinds, end of life software, and governmental shutdowns
Underwriters are scrutinizing clients’ cybersecurity profiles more than ever. The following are critical components to address when evaluating your organization’s cyber protection.
- Multi-Factor Authentication deployed throughout your network (emails, VPN, administrative accounts)
- Patching cadence
- Incident Response Plan in place that addresses ransomware
- Back-up key systems and databases stored offline
- User education – phishing testing and training
All of the above not only improve your cybersecurity profile to underwriters, they are proven methods to mitigate cyber incidents.
We are here to help. If you do not have these basic protections in place, you may find yourself with limited or no options for your Cyber Liability insurance. If you need assistance preparing for your renewal, please reach out to your broker now.
For more information visit our Cyber Risk page or contact me directly:
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