When it comes to protecting your business, insurance is a vital investment. It’s common to have insurance to protect your employees, property, and equipment in case of accidents or emergencies. But what about protecting your business data? Cyber-attacks have been on the rise in recent years; in order to protect yourself from this rising threat, you need an insurance policy that can adapt to the kinds of risks now faced by a 21st century business. At Drayden Insurance Ltd., our commercial insurance brokers in Edmonton can help you find the right cyber insurance policy to fit your business’ digital needs and keep your information safe.
What Is Cyber Insurance?
Cyber insurance covers hacker extortion demands and payments as well as lost income that can result from a cyber-attack. Traditionally, ransomware coverage is a part of a larger cyber policy. However, stand-alone cyber policies that cover ransomware are becoming more necessary.
Cyber insurance isn’t standardized, which means your organization’s cyber insurance policy will be unique to your business. It’s important for you and your commercial insurance brokers in Edmonton to carefully review policy language to choose a plan that fits. Cyber insurance policies can vary significantly in both language and coverage so seeking out professional advice can ensure you’re protected.
Things to Consider in Your Cyber Insurance
Here are some definitions, terms, and conditions that accompany a cyber insurance policy:
- Sublimits and deductibles – Most policies set a sublimit for your ransomware. This limit is important to review because demands can start on the low side but quickly increase. Not to mention that if you pay one ransom you may make your organization a target for subsequent ransom demands within the policy year. Make sure your deductible amount reflect this potential risk.
- Payment terms – A payment term in your policy may make you provide written consent before you can pay any ransom. This can mean delays in payment which in turn can lead to increased demands by hackers. If you choose to pay the ransom before providing your insurer with written consent, you may not receive reimbursement. Be aware of your policy’s payment terms to avoid compromising your coverage.
- Definition of extortion – Understand what your insurance company’s definition of extortion is since the definition can determine whether or not you receive coverage. An example: hackers are planning to sell and misuse your information, but their ransom note doesn’t mention this. Instead it just provides a countdown timer and the demand for money. You may see this as an obvious threat, but your insurance carrier may deny you coverage on the basis that there was no explicit threat to sell or misuse your information – all because your insurance company has a different definition of extortion than you.
Find the Best Cyber Insurance Policy for Your Business
When looking for ransomware coverage, Drayden Insurance Ltd. recommends a policy that uses broad terminology and protects against a wide range of treats, from data being accessed, sold, or misused to impersonation by hackers in order to gather protected information from your own clients. Coverage should also cover scenarios in which your website or network is defaced or interfered with as well as when malicious software is introduced into your systems. Be sure to look for broad terms like “threats to disrupt business operations” too. By sitting down with commercial insurance brokers, Edmonton businesses can ensure they get all the cyber insurance coverage they need to keep their organization safe from threats.
Contact Drayden Insurance Ltd. to learn more about available cyber policies and effective risk management techniques to protect your business from ransomware attacks.