You leave kerosene-soaked rags all around your house. You chain smoke. One day, while relaxing in front of an episode of CSI:Cyber, your hand slips and a lit cigarette sets your sofa on fire. Your house burns down. The insurance company pays out your fire insurance.
That’s the world of cyber insurance today, and as should be plainly obvious, this state of affairs cannot long continue. At some point insurance companies will stop paying out for gross negligence, and insurance adjusters will go over your logs with a fine-tooth digital comb.
Cyber insurance can be an important and valuable (if small) part of enterprise risk management. Understanding what it can and can’t do — and the direction the cyber insurance industry is headed — is critical to getting the most out of a cyber insurance policy. These are the five most important considerations you need to make about cyber insurance.
Understand how much cyber risk you can transfer
You only get to pass some of the buck.
Insurance is not a magic wand that makes all your security problems go away. A cyber insurance policy is no replacement for doing the hard yards of spinning up an effective…
