Introduction

• Cyber risk for companies is a very serious subject.
• Many companies are either avoiding thinking about it or adopting an ostrich-style approach.
• Cyber risk, in many measurements, is more probable, likely, and severe than other types of risks like product liability, fire liability, or premises liability.

Market Reality

• A Financial Times article suggests that the corporate world is losing its grip on cyber risk.
• The sub-headline implies that reasonably priced cyber insurance, which also improves resilience, seems to be beyond reach.
• For mid- or small-sized companies, checking into rates for cyber insurance is crucial to understanding the reality of coverage availability and pricing.

Locking in coverage

• If a reasonable policy is found, it's recommended to lock it in, as having a policy can help retain coverage for renewal in the future.
• Insurers can better assess risk with an existing policy, which may aid in securing coverage down the line.

Risk Assessment

• Even if coverage is not obtained, the questions asked by underwriters during the process can help identify areas of risk within the company.
• Rejection for coverage can provide insight into specific risk factors (e.g., operational, sales, IT) that may need attention to mitigate potential cyber threats.

Conclusion

• Losing grip on cyber risk can have severe consequences, potentially leading to business shutdowns or significant expenses from cyber attacks.
• Taking proactive steps to understand and mitigate cyber risk, whether through insurance coverage or risk reduction strategies, is essential for safeguarding the company's future.

If you have questions or want to delve deeper into today's topics, visit at Riskcoverage.com for additional resources. Until next time, stay insured and stay informed!