As companies recognize that cyber risk cannot be eliminated, only managed, they are increasingly looking to transfer residual cyber risks through insurance. Still, many small and midsize businesses and law firms are going without cyber coverage, perhaps because of confusion about how to get the right policy. Despite the undeniable challenges presented by today’s cyber insurance market, businesses of all sizes can cut through the confusion and obtain the right cyber insurance for their enterprise by following this five step process:
As explained in this post from Wilson Elser and DAC Beachcroft, the NY DFS cyber security regulation explicitly places cyber responsibility on corporate boards. Smart companies are re-examining their D&O and cyber insurance policies in light of this new exposure.
Companies purchasing new insurance coverage or renewing existing insurance policies often have more power than they might realize to improve their insurance policies. Before coverage is bound, insureds may have leverage to negotiate with insurers for more favorable policy terms, conditions, and exclusions. Here are just four areas that potential insureds should consider before a policy is issued.