As an owner or employee of a small to mid-size insurance organization, you understand risk. But have you considered covering cyber risks for small businesses? The data small businesses collect and the online footprint they leave behind, no matter how small, can make them vulnerable targets. Here are some concrete steps you can take to assess your clients’ cyber risk and offer them protection in the event of a cyber attack.
Collaborate to Determine Risk
Assessing cyber risk can be complicated. Should policies cover the monetary value of data alone? Or is that shortsighted? Is there a way to accurately predict income losses resulting from a data breach? Tech company clients often depend on their tech service provider to help sell their product. Should a cyber insurance policy include protection against third-party damages? Recent breaches have resulted in major corporations paying off hackers. Is it appropriate to include extortion when determining risk?
Consulting and collaborating with your client is essential in determining their organization’s cyber risk. Not all companies collect or interact with online data in the same way. This makes it difficult to create a standard policy. The right tools and a solid understanding of how your client determines risk will enable you to create a timely, relevant policy. With so many possible cyber breach scenarios, it is wise to invest in risk management software that is capable of tracking, updating and amending claims whenever cyber protection needs change.
Collect Cyber Insurance Data
One of the biggest obstacles to standardizing cyber insurance is a lack of data. Without actuarial data, cyber risk predictions lack the accuracy found in other types of risk assessments. One solution to this problem is to begin collecting your own data. Captive insurance market providers are best suited for this kind of data collection, but any organization can begin collecting cyber risk data. Insurance management software makes it easy to collect, update and analyze loss and claims information.
Choosing risk or insurance management software packages that integrate with your existing system simplifies data collection and results in a customized, data-backed cyber insurance policy.