Industry experts on little known cyber insurance purchase tips
“The big mistake many organizations make is that they ask their broker for policy coverage and assume that the broker and carrier will know immediately what their exposure is based on generic information. It’s incumbent upon the education organization to work closely with their carrier and broker to make sure they understand their business model and operations. This will help all parties understand the exposure and find the right insurance program and policy to address it.” —Samit Shah, insurance strategy and operations manager, BitSight
“Campus administrators should look beyond peer benchmarking when assessing program adequacy and rely more heavily on loss quantification and risk analysis to make more informed decisions. Most stakeholders in higher education recognize the need for a cyber insurance solution, with higher education purchase rates greater than any other industry, but peer benchmarking makes it challenging to support larger insurance program structures that correlate with cyber risk exposure.” —Marty Leicht, vice president, Cyber Center of Excellence, Marsh
“Invest the time to be an educated consumer to ensure you are aware of all that a cyber insurance policy can do for your institution—and insist on a tailored fit. There are numerous broad coverage provisions that can be triggered, various pre- and post-breach services that may be available to reduce enterprise risk, and a suite of vendors that can be engaged on short notice to abate and respond to a breach.” —Mark A. Dobrow, vice president, Segal Select Insurance Services Inc.
“According to the “Hiscox Cyber Readiness Report 2019,” 72% of most organizations plan to increase cybersecurity spending in the coming year, but just 11% are increasing their spend on employee training. Universities, like all organizations, must build a human firewall to reduce their exposure to cyberthreats. They can do that through consistent employee training. Universities are vulnerable to phishing attacks, data breaches, DDoS attacks, keylogging and ransomware threats. Cyber insurance offers a financial backstop for the costs associated with these cyber events, [and a] cyber insurance policy may also offer basic cybersecurity training solutions that can help universities mitigate their risks.” —Meghan Hannes, cyber product head, Hiscox USA
Read the main story on purchasing and renewing cyber insurance here.