By: Ben J. Carnevale, Editor
One of the more common areas of interest suggested by many of the readers of this website involves the concern of cyber security related risks and the availability (or lack thereof) of cyber insurance options to address this rising risk mitigation topic.
Without thinking too long about this major risk management topic, it can certainly be said that data breaches have increased dramatically within the past few years, giving way to new trends within almost every industry sector of business in the U.S.
In addition — and along with their unpredictable nature — data breaches are hard to budget for. But, according to many recent reports, one aspect of an overall risk management strategy is becoming increasingly important and worth exploring: cyber insurance.
Does your organization believe that cyber insurance will cover its cyber security risks?
In past postings attempting to address this question, the topic of errors and omissions insurance was one of the most mentioned and potential solutions to this area of risk management.
However, as stated by Steve Schoenberger, VP & Technology Liability Practice Leader, Mason & Mason Technology Insurance Services, Inc., “…Errors and omissions or professional liability programs purchased by software or other service companies may provide coverage for some third-party cyber liabilities, but the policy should be carefully reviewed, and it is unlikely to protect against all of the liabilities previously discussed. There is often language that effectively excludes claims arising out of security breaches, the release of confidential information or acts by rogue employees. In addition, errors and omissions coverage is generally limited to claims arising out of the delivery of a specific service. Errors and omissions coverage may not respond to claims arising out of a network unrelated to the delivery of a product or a service, such as the spread of a virus to an affiliate or supplier.”
So fully recognizing the need to go beyond simple errors and omissions type insurance solutions, our staff has compiled the following list of cyber-insurance related articles to help our readers expand their understanding of this complex risk management topic:
Please share with our readers any additional articles, comments or suggestions you may have to better mitigate this risk through insurance options.
And, if applicable, please pass this information along to those senior cybersecurity risk management officers in your organization.