PORTLAND, Ore. April 19, 2012 10 Things to Consider Before Purchasing Cyber Insurance http://www2.idexpertscorp.com/resources/general-resources/tools1/10-things-to-consider-before-purchasing-cyber-insurance/
Evaluating Cyber Insurance
Cyber insurance policies typically cover an organization’s data that is stored both online and offline. These policies are designed to help offset expenses that may arise from a data breach event, including forensics investigations, notification letters and call centers, credit monitoring, legal fees, public relations activities, regulatory and legal fines and penalties, and liability.
However, there are often limits on coverage and choice. Some cyber policies may restrict the way an organization responds to a data breach. For example, in the event of a healthcare data breach, the policy may only cover credit monitoring services, when in fact a patient needs medical identity monitoring. Or coverage may not extend to a data breach caused by a third party, such as a cloud computing service provider, even though the primary organization is liable.
Before deciding on a particular policy, companies must carefully evaluate their options. ID Experts recommends companies:
- Understand their current insurance coverage
- Assess the risks for a data breach and potential exposure of sensitive data
- Take advantage of value-added services offered by an insurer
- Avoid common pitfalls with an insurance carrier
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