Security Pros Speak Out on the Need for Cyber-Insurance

Security Pros Speak Out on the Need for Cyber-Insurance

In this day and age, cyber-insurance policies are necessary, but they come with a number of caveats. Ten CISOs offer tips for success in procuring the right policy.

Cyber-Insurance Will Gain in Popularity

Due to recent high-profile breaches wreaking havoc on many enterprises, cyber-insurance will be gaining velocity and popularity. The board and the C-suite will have an appetite for reducing risk, in part, by offloading it to insurance providers. — Roota Almeida, Delta Dental of New Jersey Head of Information Security

Know What You Want to Protect

When buying insurance, you know what you plan to protect—your car, your home, your income, for example. When considering buying cyber-insurance, you should also know what you plan to protect. — Meg Anderson, Principal Financial Group

The Benefits of Cyber-Insurance Are Great

I believe there are great benefits in obtaining cyber-insurance. It can only contribute in a positive way to a security organization. Most policies will provide a CISO with yet another point of validation and third-party reflection on the overall security program, which can never hurt. — Paul Calatayud, Surescripts

Choose a Reputable Carrier

I think it’s necessary and smart for every company to have a policy with a reputable carrier; but the challenge the industry faces is the actuarial model that insurance companies rely on is not capable of predicting who or what is at risk. — Jonathan Chow, Live Nation Entertainment

Traditional Insurance Policies Fall Short

Cyber-insurance is an important topic for the CISO to discuss with the organization. Traditional insurance policies are beginning to specifically exclude cyber breaches. If an organization is not paying close attention for these changes, they could find themselves without adequate coverage in the event of a breach. — Darren Death, ASRC Federal

Is Cyber-Insurance Worth the Cost?

The area of cyber-liability insurance is growing exponentially, yet there is little data to show it is worth the cost. To make this determination, CISOs must be able to answer the following: If you are breached—based on the data and legal requirements—can your organization afford the costs of identity protection, notification of individuals, recovery of data, and so on? — Michael Dent, Fairfax County

The Cyber-Insurance Market Is No Flash in the Pan

The cyber-insurance market is hot and is here to stay, so be wary of anyone who says cyber-insurance offerings are too expensive for insurance companies to maintain. — Kim Green, Zephyr Health

Insuring Against High Costs of Data Breaches

Insurance carriers underwrite cyber-policies that cover liability related to data breaches and major security incidents, which can be costly to identify, contain, resolve and recover. — Michael Molinaro, BioReference Labs

You Will Be Breached

We all need cyber-insurance. As they say, it’s not if, but when you will be breached. Will your policy provide the kind of coverage you need when this happens? That is the real question. — Farhaad Nero, Bank of Tokyo-Mitsubishi VP of Enterprise Security

What Cyber-Insurance Covers

Today’s cyber-insurance coverage is primarily for (1) forensics: determining the root cause of a potential data breach as well as whether or not records were compromised, and (2) credit monitoring: providing free credit monitoring to breach victims. — Larry Wilson, University of Massachusetts