4 Questions To Ask Your Cyber Insurance Broker

Most businesses are reliant on the internet. This exposes them to a variety of risks, such as cyber attacks and phishing. Cyber insurance is a policy that provides compensation to businesses that suffer financial losses due to cyber attacks. A cyber insurance agent will help you choose an appropriate amount of coverage for your business. This article discusses a few questions to ask your cyber insurance agent when getting cyber insurance. 

1. What Cover Does The Business Need? 

The agent should assess your business operations and suggest an appropriate amount of coverage. For example, a business interruption or first-party policy will compensate you if you suffer financial losses due to a cyber event. On the other hand, a contingent business interruption or liability policy offers compensation if you have losses due to a cyber attack on another business. 

2. Which Insurance Company Will Meet Your Needs Best? 

Below are some considerations that the broker will make when choosing an appropriate insurer: 

  • What experience and specialisation does the insurance company have? Insurers specialising in cyber insurance will have extensive cyber attack coverage.
  • What is the financial stability of the insurer? Insurance companies in serious debt or those that have filed for bankruptcy may not be in a position to offer compensation.
  • What is their claims process like? For example, they should allow clients to make claims through an email or online portal. The company should also conduct investigations in the shortest possible time. 

3. What Are The Terms Of The Policy? 

The broker should explain the terms of the policy. For example, what does the policy cover? A comprehensive policy will cover network security, regulatory proceedings, errors and omissions, business interruption, cyber extortion, and privacy liability. You also need to understand your obligations. For example, what should you do once you realise your network is under attack? Some policies have a retroactive aspect that compensates you for attacks that happened before you had insurance. 

4. How Much Does The Policy Cost? 

In most cases, the insurance company will need to review your business operations to determine your insurance premiums. Ideally, you will pay more if your business is vulnerable to a wide range of attacks. However, you could bring down the premiums by investing in high-quality antivirus software and installing firewalls to protect the network from unauthorised intrusion. You could also install other software, such as mobile device management and intrusion prevention systems.

For more information, reach out to a local insurance brokerage, like MGA Insurance Brokers Pty Ltd.