Lawyers should take advantage of Computerworld’s recent update to IT professionals about cyberinsurance which included Gartner’s definition of cyberinsurance “as protection against losses stemming from data theft and data loss, or business interruptions caused by malware or a computer malfunction.” The Computerworld report entitled “5 things you should know about cyber insurance” include these comments about the:
… staggering costs associated with data compromises are driving more companies to seriously consider cyber insurance, and plenty of insurers are stepping in to meet the demand.
#2 on the list is Look beyond the quote sheets is very important and Computerworld made these observations:
When purchasing insurance coverage for data breaches, pay attention to the fine print. Cyber insurance is an emerging field, and insurers don’t yet have a body of historical data to rely on when issuing policies, experts say. Policies that indemnify holders against losses due to cyberthreats are far less standardized than policies for other types of insurance. They often contain caveats and exceptions, making the coverage less comprehensive than it might appear on a quote sheet.
Here is Computerworld’s list of 5 thing you need to know:
- Insurance isn’t a proxy for security
- Look beyond the quote sheets
- Know your exposure
- Understand what insurers want
- Know how to minimize deductibles
Since all clients and lawyers need cyber insurance this list should be important to you!