Cyber risks are a serious concern for companies. However, some companies are avoiding the topic altogether, like an ostrich with its head in the sand. Despite this, cyber risk is more probable and severe than other types of risks, such as product liability, fire, or premises liability. Therefore, cyber risk is a significant issue that companies must address.
A recent article in the Financial Times states that the corporate world is losing control of cyber risk. This means that the situation is out of hand. The sub-headline of the article is even more alarming, suggesting that reasonably priced cyber insurance that can improve resilience is difficult to obtain. In essence, the author is saying that it’s challenging for companies to get cyber liability insurance that covers potential losses at a reasonable cost.
If you’re a mid or small-sized company, it’s important to check the rates for cyber insurance to understand the reality of the situation. It’s possible that it’s already too expensive. If you can find a policy that’s reasonably priced, we recommend locking it in. Having a policy will allow the insurer to see your risk, which can help you retain the policy for renewal two or three years from now. If you haven’t checked for coverage or availability in the market, it’s worth doing so. Even if you’re unable to get coverage, the questions asked by the underwriter will help you identify the risks your company may face.
While you may be rejected for coverage, the underwriter will provide reasons for their decision, such as X, Y, and Z. These reasons can help you make adjustments in your operations, sales process, or IT department to reduce risks. Even if you’re unable to get a policy, risk reduction will help protect your company from a cyber attack that could lead to significant expenses or even put you out of business.
In short, don’t lose your grip on your company’s security. Take steps to protect your business from hackers, ransomware, and other cyber attacks, and consider getting cyber insurance to help mitigate the risk.