We are continuing our series on cyber insurance and going over the reasons why you need cyber insurance if you own a business, any business.
Today, we are going to take two policies. We’re going to compare them side by side. The reason we’re doing this is because like we always talk about, not all insurance policies are created equal. You don’t just want to go on the first quote you get, or the cheapest quote you get, because there are differences that can mean the world of difference if, and when you have a cyber insurance claim.
So let’s jump into it. Let’s look at the differences and hopefully this helps you when you are shopping for cyber insurance policy. You can follow along in the video above and look at the document below for reference.
We have a company here that does about $800,000 in revenue. The record count is right about $2,400 and we have two quotes here.
Now, if you look at it real quickly and not look at any other factors, you look at this one and you say, okay, it’s almost $10,000. Look at the other one, oh, my goodness, that one is only $1,500. Of course, you’ll want to go with the cheaper one. However, let’s look at them side by side and compare them. And by the end of this, you may reconsider wanting to go with the cheaper company.
In the video we’ll go over and compare the following coverage:
Media Liability – Defense and Indemnity for claims of libel, slander, copyright infringement, trademark infringement, invasion of privacy, etc.
Dependent Business Interruption – Coverage for financial losses due to a cyber event when a 3rd party provider experiences an outage that causes you disruption; 3rd parties often include cloud providers or other software/services providers
System Failure – Coverage for business interruption resulting from an unplanned or unintentional outage, often caused by employee error or power outage
Ransomware Payment Provision – Provision for how the policy responds to a ransomware claim; “Pay on behalf” indicates the carrier will tender payments due when a ransom event occurs; “Reimbursement” indicates the insured will pay out of pocket and then seek reimbursement for covered losses
Invoice Manipulation – Coverage for the release or distribution of a fraudulent invoice or fraudulent payment instruction to a third party as a result of a cyber- event
Cypto Jacking – Coverage for costs associated with unauthorized use of the insured’s computer processing power to mine crypto currency
Reputational Harm – Coverage for lost income from an adverse media event due to a cyber event that damages the insured’s reputation
Breach Response – Coverage for 1st party breach costs outside of and in addition to the policy aggregate limit
Is There A Difference Between Cyber Insurance Companies?
You can see the importance of making sure you know what coverage is on your cyber insurance policy. If you buy the wrong policy, you’re going to be very upset when you need to use it and you don’t have the coverage. If you need help looking over your options, making sure you have the right coverage, exploring all the coverage options, we’re more than happy to help you. Please reach out and we’ll jump on a call.