By now, most of us understand that the potential for a cyber hack is as great for a small company as it might be for the largest employers.
In response, insurers have been offering cyber coverage for years. But what, exactly, does one of these policies do for you beyond offering liability coverage for a data breach?
Here are seven ways a cyber policy can help get your company back on track:
- For the more serious breaches, you can expect the insurer to begin by assigning a breach coach to your case. Typically, this data security/data privacy lawyer specializes in responding to these kinds of events and will stay by your side, addressing issues as they crop up, until the breach is resolved.
- Digital forensics. This is the process by which the insurer helps you determine the source of a breach and identifies the customers whose information was stolen. This isn’t a job for everyday IT professionals; it requires specific expertise. The digital forensics experts who respond to your breach also will help you ensure the breach is stopped and help you find ways to improve your network security.
- Notifications. You’ll want to be sure any victims of a breach are alerted in a timely manner. Notification services include help in preparing emails, making phone calls and physical mailings. For companies doing business in multiple states, the different and sometimes confusing state laws make responding to a data breach in an appropriate, timely and a compliant fashion difficult. The right cyber policy can help you tackle that job.
- Legal assistance. What’s the law say exactly about compliance? What steps are you required to take? Only lawyers with the right training can answer those questions with confidence. Your policy provides that, too. When you stop to consider that in the U.S. alone, data breaches cost organizations an average of $225 per record compromised, having a lawyer at your side who understands the nuances of cyber law can be a significant benefit.
- Public relations. No one likes negative publicity. A cyber policy covers the cost of the crisis communication specialists who can parachute in to help make sure the public understands you’re responding affirmatively and doing all you can to protect your customers’ data. One of the big mistakes companies make is to expect their in-house marketing/PR team to manage a data crisis. The fact is, the scope of their responsibilities is too great for them to be expected to know the evolving regulatory field governing data privacy. The best crisis response requires professionals who spend their time following the latest regulations, technology and best practices.
- Credit monitoring. Victims of a breach appreciate this one especially. It includes identity fraud assistance that can help victims of hack protect their credit history.
- Regulatory concerns. What if regulators respond to your breach with punitive measures? Just think of what’s happened to Facebook in recent months. Your policy can cover this, too, helping you manage government claims that might arise.
Morgan P. Mahoney is an Insurance Advisor at CCIG. Reach him at 720-330-7926 or MorganM@thinkccig.com.
CCIG is a Denver-area insurance brokerage with the full-service capabilities of a national brokerage. We do more than make sure you have the right policy. We help you manage your long-term cost of risk with our risk and claims management expertise and a commitment to service excellence.