To protect themselves from cyberattacks and security breaches, companies need a comprehensive risk assessment and should work with underwriters to make sure they both agree and understand the terms of cyber insurance policies, according to Greg Reber, the chief executive officer of AsTech Consulting, an independent cyber security consultancy specializing in software and IT infrastructure security.
“Executives underestimate the potential losses from a cyber-attack and are unclear how to best insure their operation against potential losses,” said Mr. Reber. “They buy cyber risk insurance, but too often the coverage is inadequate since many insurance companies rely on self-reporting when assessing areas of coverage. By being better educated about cyber risk and cyber risk insurance and taking simple preventative steps to isolate potential areas of cyber risk, companies will be in a much better position to protect themselves when they do have a security breach.”
To ensure proper cyber risk insurance coverage, Mr. Reber recommended that companies take a number of steps:
1. Assess their cyber risk to understand the specific possibilities for a cyber-attack and what data could potentially be exposed or lost. The best approach is to assume that you cannot cover all possible contingencies, so it is a matter of when a breach will occur, not if.
2. Develop a cyber breach response strategy, including remediation and notification, to minimize potential losses.
3. Work with an experienced cyber risk underwriter that understands the potential losses from a cyber-attack or data breach and is willing to develop a policy with adequate coverage.
4. Review potential cyber risk annually, since the degree of cyber risk changes over time.
Learn more: www.astechconsulting.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].