The Most Important Coverage on your Cyber Liability Insurance Policy
Cyber Liability insurance is often referred to as the Wild Wild West of insurance, mainly because the forms and coverages differ so greatly from one to the next. It’s incredibly difficult for owners and c-level executives to differentiate one policy from the next and frequently their broker isn’t much help. I could bore you with all of the important items to look for in a cyber policy but instead prefer to focus on the two most critical coverage parts you should look for.
A majority of the claims we see involve Ransomware or Social Engineering Fraud so you can guess those are the two coverages I’m going to recommend that you include in your policy. Most carriers will offer some form of coverage for ransomware while fewer carriers are offering social engineering fraud coverage. Those that are offering social engineering fraud coverage typically offer small amounts of coverage with higher deductibles.
While most people are aware of the Ransomware threat, social engineering has more recently become prominent. Social engineering fraud is typically initiated by some type of phishing attack where the hackers try to trick an employee into sending funds or valuable information outside of the company. They do this by impersonating the CEO, CFO or other important employees.
If you’re wondering whether or not you have coverage for these two types of claims, feel free to reach out to us and we’re more than happy to review your current cyber liability policy.~Travis Holt