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There are several questions that organizational and security leaders must ask to ensure they choose the ideal cybersecurity insurance provider and policy for their needs.
Refer to this list below for example questions organizations should ask of potential providers, along with some insight into how to find the right answers.
How much cybersecurity risk is your business exposed to?
The bigger the potential risk, the more that organization should consider paying a premium price to work with a top-tier insurance company. When a cyber incident occurs, the last thing anyone wants to do is to scrape and claw for insurance coverage payouts. If, however, the business incurs much smaller risk, it may be worth the gamble to choose a provider largely based on cost.
How flexible are cybersecurity liability policies?
Every insurance provider packages policies differently. It is up to that organization's leaders to determine what level of protection is necessary. After some research, it will be clear that some policies will be a much better fit based on the business vertical, policy options, payout limits and terms the insurance provider has to offer.
How do insurance companies manage cybersecurity threats for first person vs. third person and in-house vs. cloud-controlled data and applications?
The actuarial science techniques employed by each insurer vary from one company to the next. Some providers will place a higher risk of security threats either internally or externally. If the business plans to migrate apps, data and services into the cloud, its leaders should be sure that the premiums will not significantly increase over time.
Keep in mind that the popularity of cybersecurity insurance is growing. The number of cybersecurity insurance providers on the market is also on the rise. That gives policy seekers an advantage compared to those that locked in policies a decade or more ago when there were far fewer options.
As a final rule, always shop around to see what is available. Business leaders should choose the company that they feel most confident in and that offers the most attractive rates.