CYBER SECURITY INSURANCE: SUFFICIENT SAFEGUARD OR RUSSIAN ROULETTE? (WHITE PAPER)
This free white paper discusses whether cyber security policies provide adequate coverage for your brand equity and confidential data or just a false peace of mind, and the importance of secure data storage. It was authored by board member Jason McBride.
Findings from the Identity Theft Resource Center indicate there has been a total of 641 data breaches recorded from the begging of the year through November 3, 2015, and that nearly 176 million records have been exposed.
A growing number of companies are turning to cyber security policies with the expectation that they won’t end up in a similar situation. Some policy holders want protection primarily for network security liability which is designed to address third party damages as a result of denial of access, costs related to data breaches of third party suppliers, and costs related to the theft of data on third party systems. Other companies may have a greater need for standard coverage pertaining to data breach and privacy crisis management. Unlike the former type of cover, the latter form of coverage was designed to specifically address expenses related to the management of an incident, investigation, credit checking, and other such general remediation efforts. The amount and type of coverage are as varied and complex as a company’s infrastructure.
And yet, there is substantial evidence which suggests that having a cyber security policy creates a fictitious sense of protection which only comes to light once a breach occurs.