We hear from Liz Mills, Senior Placement and Relationship Executive at Polygon Insurance Brokers on her experiences from clients on the subject matter of cyber.
3 things I regularly hear when talking about Cyber Insurance...
We don’t have any exposure as we outsource our IT…
This does NOT remove your third-party liability exposures, in fact many cases third party providers limit their liabilities, noted in their contractual agreements.
If your data storage is outsourced and their systems become compromised, it is likely still your responsibility to notify affected individuals and deal with any associated regulatory actions.
We don’t need cyber insurance…
You may have alarm systems/ CCTV in your home you still purchase home insurance, cyber insurance is no different. In the same way that an alarm system may fail or be disabled, cyber hackers can also bypass security provisions, steal data and lock users out of the computer system.
No matter how much a company invests in IT security, systems will never be 100% secure - cyber insurance is there as another line of defence for a business.
Cyber insurance is too expensive…
Increased severity of cyber claims has had a knock-on impact to the pricing of this cover. That said, is it something that you can afford not to have?
Cyber policies can help recover cost for some ransom payments, business interruption costs, system damage and stolen funds. There is also additional value-add services such as vulnerability scanning and real-claims data.
If you would like to speak to Liz in more depth about your current cyber coverage, please get in touch.
Polygon Insurance Brokers Limited is licensed as an insurance intermediary by the Guernsey Financial Services Commission. License number: 2272183. Registered office: Les Vardes House, La Charroterie, St. Peter Port, Guernsey GY1 1EL. Company registration number: 70256.
