Dive into the insights from a captivating episode of the One Step Beyond Cyber Podcast, hosted by our Founder and CEO, Scott Kreisberg. To suit your preference, we've transcribed the key takeaways into this blog post. If you prefer to watch the video version, the full podcast episode is linked at the end of the intro for your convenience. Podcast clips have been included following each section.
Nowadays, businesses face a dual challenge when it comes to business technology: building a robust infrastructure with IT services and safeguarding against unforeseen cyber threats. With vulnerabilities lurking at every corner, the One Step Beyond Cyber Podcast is shedding light on how cyber liability insurance (CLI) can help protect businesses.
With technology integrated into every aspect of business operations, business leaders cannot afford to neglect cybersecurity. With over 90% of successful cyber attacks beginning with a phishing email, according to the Cybersecurity & Infrastructure Security Agency (CISA), the smallest oversight can compromise a company's operations. This underscores the critical need for advanced IT services to fortify against cyber threats, providing a robust defense mechanism against potential vulnerabilities.
Cyber Liability Insurance: Beyond the Basics
While having cybersecurity measures in place is crucial, it's equally essential to acknowledge the significance of cyber liability insurance (CLI). However, assuming that CLI coverage is a “set-it-and-forget-it” solution is a common misconception.
There are two types of companies – those that have been hacked and know it, and those that have been hacked and remain unaware. IT services act as the frontline defense, akin to placing locks and gates on your digital front door. However, no matter how secure, cyber threats can still breach these defenses. This is where cyber liability insurance becomes indispensable.
The Frequency of Consultations
How often do businesses need to engage with their insurance consultants?
Different perspectives from industry experts shed light on the varying needs—ranging from quarterly business reviews (QBRs) and regular scanning to annual consultations. These insights provide businesses with a roadmap for establishing proactive communication with their insurance consultants.
As Joseph Cook, cyber risk manager with over 10 years of insurance expertise at The Arizona Group, points out, a symbiotic relationship between IT services and cyber insurance is important and he recommends regular communication.
While IT services sustain a business’s technology and network, cyber insurance steps in as the safety net.
The evolving cyber insurance market has matured, with carriers focusing on cyber controls. Compliance with these controls is not just a “checkbox exercise” but a strategic move that directly influences policy terms, conditions, and coverage.
Making sure your business meets these requirements could determine whether you're completely protected following a cyber attack or left to deal with all expenses and damages by yourself.
Tailored Cyber Insurance Solutions
Dispelling the myth of a one-size-fits-all cyber insurance plan, the mantra "Don't View Us as Vendors – Think of Us as Consultants" underlines the consultative role that brokers and consultants play in guiding businesses through compliance, offering tailored solutions that align with their specific requirements.
While carriers are exploring proactive measures like intermittent scanning, Joseph Cook emphasizes the value of honesty and transparency in the insurance process. “Working with consultants like One Step ensures businesses accurately represent their cybersecurity measures, positively influencing policy rates.”
Self-Insuring and Risk Understanding
When businesses explore self-insurance, they're diving into IT and information security without expertise, believing they can improve their security standards alone. However, experts warn against self-insuring, emphasizing the importance of professional guidance to effectively understand and manage risks.
Dynamic Solutions for Dynamic Businesses
“Dynamic business requires dynamic solutions." Businesses need to evolve alongside technological advancements, leveraging both IT services and cyber liability insurance to stay resilient in the face of ever-changing cyber threats.
It's recommended that companies thoroughly evaluate the terms and conditions of their cyber liability insurance policy, to see if it provides customized and adaptable coverage.
The bottom line, all business demands a proactive stance, transparency, and strategic alignment with experienced consultants to navigate the intricate terrain of cyber risk management.
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