Cybercrime has risen last year alone by 11%. From this stat alone, there is no longer a matter of “will I get attacked?” it’s a matter of, when. According to an Accenture study, companies are set to see costs of $5 trillion by 2020 due to cybercrime, and companies are investing an unprecedented amount falling between $7-10 Billion dollars by that time – in liability insurance.
The market for cyber liability insurance is quite new and unregulated, this is why insurance companies tend to only cover .02% of Millions in incurred damage. There are blurred lines between property, auto and cyber risk as it can land itself across all verticals, this is why you see companies hesitant to deliver payouts.
Here are the Top 5 Reasons that Cyber Security Companies will deny your claim:
Companies generally have poor prevention practices and therefore are denied claims due to failure to comply with insurance policy practices regarding secure data. We assist in coaching our clients in adopting compliance measures or at times, ensuring that measures are in place.
2.Failure of Documentation for preventative measures
An ultimate assurance is to have clearly documented processes and have snapshots of the environment before disaster strikes.
Not many companies do this and therefore miss out on Payouts. We assist companies by Auditing and streamlining this process via our Compliance documents, screenshots and data grabs.
3. Errors & Omissions
By having detailed data reporting you are able to tell your story coherently and show a clear detailed timeline of events. That way, if a cybersecurity disaster occurs, providing compliance documentation becomes much easier. This is why we hold vCIO meeting with our clients with clear outlined reports that align with compliance policies.
4. Contractor Slips Information
It’s common for a vendor to open a gate to your information and this is where you should have the measures in place to fix security gaps before threat actors gain a foothold.
You must have everything ready and pay close attention to coverage time-frames as they can mean the difference between covering all of your losses versus just a small percentage.
Cyber Liability Insurance plans won’t pay out unless proper documentation of compliance effort is made and available and this is whether MSPs play a key role. We assist our clients from top to bottom when it comes to compliance and certifications.
Contact one of our specialist at firstname.lastname@example.org to find out more.