Cyber Insurance Vital to Most Businesses

insurance agency in Orlando

While commercial insurance encompasses many aspects of business insurance needs, it doesn’t provide for issues pertaining to breaches, cyber liability, and cyber crimes that are currently creating serious concerns in most industries across the US. Cyber insurance policies are focused on mitigating legal liabilities that can arise from a breach event where private and confidential records are stolen.

Cyber policies from an insurance agency in Orlando can be prescriptive in their response to a data breach. It’s important to involve managers throughout the organization early in the decision-making process to make sure that their departmental requirements are being met and also that issues addressed by the policy are fully understood.

Assess the risks for a data breach

Each company should evaluate its overall probability of experiencing a data breach as well as the level of sensitivity of its data. This includes factors such as applicable rules and regulations that must be adhered to, the amount and type of data being stored, technology infrastructure and practices, the use of mobile devices, along with the number of third-party contractors provided access to sensitive data.

Determine the financial resources available for an effective breach response. Before investing in cyber insurance, organizations should determine the approximate amount of coverage required to cover network downtime, legal fees, forensics investigation, breach notification services, identity monitoring and recovery services, regulatory fines, penalties and expenses which could stem from a class-action lawsuit.

Any coverage gaps could leave an organization responsible for the full cost of a data breach response and your cyber insurance would be useful in helping cover those costs.

Performing a comprehensive privacy and security risk assessment can further help your organization identify, evaluate and mitigate gaps in its security and privacy programs.

A broker from an insurance agency in Orlando who understands the ins and outs of cyber insurance can help you by breaking down and comparing offerings from several different insurance providers. Agencies will often offer value-added services that can help identify and mitigate any existing breach risks, as well as validate your need for additional insurance to address other concerns.


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