How to Prevent Your Cyber Liability Claim from Being Denied

How to Prevent Your Cyber Liability Claim from Being Denied
It’s no longer “if” you get hacked but “when.” As data breaches continue to rise, organizations are turning to cyber insurance for more protection. Unfortunately, due to the number of cyber attacks and claims, cyber insurance firms are limiting payouts based on exceptions in the terms and conditions. Organizations that haven’t fully read the fine print and made efforts to prevent breaches are being denied their claims.  In the midst of a security incident, the last thing companies want to do is battle with their cyber insurance company. Here’s the steps you should take to prevent your claim being denied:

#1: Make sure you have the right coverage for your business.

Inadequate coverage could leave you holding the bag on some very expensive issues. Read through those terms and conditions to make sure everything you need is covered. All businesses need coverage for:
  • Third-party lawsuits 
  • Fraudulent payments and wire transfers
  • Lost revenue from downtime and remediation 
  • Client and company data loss

#2: Implement a Data Breach Prevention Strategy

If your organization has made no attempt to prevent a breach, then your cyber liability insurance policy may not pay out. It’s important to show your company has made great efforts in securing their data and network.  According to the Open Systems Interconnection (OSI) model, these are the 7 layers of cybersecurity protection your business needs:
  • Human - includes cybersecurity training for employees and web filtering that prevents visits to infected websites.
  • Perimeter - includes next-generation firewall and asset management.
  • Network
  • Endpoint - includes endpoint detection and response, mobile device management and security information and event management (SIEM). 
  • Application 
  • Data - includes data encryption, multi-factor authentication, disaster recovery and backups.
  • Mission-critical assets 

#3: Document your security efforts 

Simply having security measures in place is not enough for insurance companies. They want to see the efforts you’ve made, which is why documentation is so critical. Your IT firm should provide you with technical business reviews on a regular basis that documents the security of your network.  Another thing to keep in mind is real-time logging and alerts. These generate reports.

#4: Ensure your third-party vendors are secure

In the healthcare industry, HIPAA compliance requires organizations to have business associate agreements. While cyber liability policies may not require this, it’s a great practice to have in place. This ensures you have an agreement with your third-party vendors to uphold the same cybersecurity measures. 

#5: Report suspicious activity to your cyber liability insurance company ASAP

As soon as you detect suspicious behavior or a potential breach, reach out to your cyber insurance company. If you wait, they could deny your claim. 

Be Confident You’ll Get Paid by Your Cyber Insurance Firm

If you’re concerned that your claim may be denied, then it’s time to take the proper precautions to ensure you’ll get a payout. We can help with this as we work with many New York City businesses. Krantz Secure Technologies can help with your technology and security needs. Contact us today! Phone: 212-286-0325 Email: 
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