Cybersecurity Insurance – How Will Your Coverage Stand Up to a Claim?

Cybersecurity attacks have become all too common. Some optimists still believe the attacks won’t happen to them, but realists are taking measures to reduce their chances and mitigate their damages of becoming victims.

According to this year’s IBM/Ponemon Institute “Cost of a Data Breach Report,” the average cost per compromised company record for 17 industries was $161—a high of $429 for the healthcare industry and a low of $78 for the public sector. A company spending the industry-wide average of $161 multiplied by as few as 625 impacted data records would take a financial hit of over $100,000. As well, a forensic investigation resulting from a ransomware attack where no data is stolen could easily cost a business $60,000 to $80,000, as Joe Brunsman of Chesapeake Professional Liability Brokers told us in our HBK Risk Advisory Services August 26 webinar. (Listen to our webinar on Cybersecurity Insurance Assessments.)

Your effort to improve your cybersecurity posture should include implementing a defense-in-depth strategy with your cybersecurity insurance policy serving as your backstop. But not all cybersecurity insurance is the same. As we learned during last week’s webinar: there are almost 200 different cyber policies. Some cover costs pertaining to legal, computer forensics, data restoration, legal, and/or public relations. You should work with a specialist to ensure that you have the right policy for your business. Will your policy stand up to a substantial claim?

HBK Risk Advisory Services can help you determine how well your cybersecurity insurance policy will perform when you need it. Moreover, we can help you develop and implement a cybersecurity program that fits your organization’s risk appetite and budget. We also offer Security Awareness Training featuring phishing simulations, IT security policy development and risk and readiness assessments.

Call us at 330.758.8613, or email me at wheaven@hbkcpa.com for more information. As always, we’re happy to answer your questions and discuss your concerns.