10 Cyber Insurance Questions to Ask Your Agent
If you own a business, one of the most important policies you can have is cyber insurance. If you keep any of your business information on your computer, then this type of coverage will help protect you in the event of a security breach. You should talk to your agent about getting a cyber insurance policy. If you already have one, you should discuss if you have the right amount of coverage for your business. Before you hop on the phone, these are some questions that you may want to ask your agent:
- What does cyber insurance cover?
You’ll want to know what exactly a cyber insurance policy will cover before you commit. Make sure that is covers all your bases.
- What are the exemptions in the policy?
Not every policy is made the same. There may be exemptions in a cyber insurance policy. So, as well as finding out what it does cover, find out what it does not cover! You should know this ahead of time so you are prepared in case something does happen.
- Does my data need to be encrypted?
There are some policies that only cover data breaches that occur on encrypted data. You should ask your insurance agent if this is the case with your insurance policy. You may also want to inquire how this affects devices whose encryption is out of your control. What happens if those devices experience a data breach?
- Where is my business or industry most vulnerable? How will cyber insurance help address those vulnerabilities?
Your insurance agent can best help assess where your business needs coverage. For certain industries, there may be common vulnerabilities that you will want to cover. When talking about cyber insurance, you should discuss how cyber insurance will help protect your business. If you only keep simple documents on the computer, you may not need as rigorous coverage as a large-scale digital business.
- Where are the gaps in my current policy?
If you currently have a cyber insurance policy in place, you should review it with your agent. You will want to talk about any potential gaps in your coverage and the best way to address them.
- How will adding cyber insurance affect my premiums? Are there any ways to keep costs down?
You should discuss how adding a cyber insurance policy will affect the cost of your insurance plan. You may also want to ask about other discounts you may be eligible for to keep costs down.
- If a cyber breach does happen, how will it affect my premiums?
No matter how prepared you may be, a data breach can still happen. If it does happen, you’ll want to make sure that they don’t make your premiums skyrocket.
- Does the cyber insurance policy cover the “first” party in full? What about third parties?
You should talk about who exactly the policy covers. Does it cover just your business or does it provide coverage to the third party as well? This information is important to go through before deciding on what coverage you want.
- What is the effective start date?
Basically, when does the coverage start working? - What is the retroactive date? Is there a retroactive date?
Talk about the dates that the coverage covers. What date does it cover from and until when is it effective?
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