Technological advancement, increased connectivity, and more cunning hackers all drive the evolution of cyber risk. Companies that don’t keep pace are exposed.
The earliest iterations of cyber insurance covered liabilities associated with network failures or breaches of private data — if your system security failed for any reason, cyber insurance covered the cost of the response. Traditionally, the retail, healthcare and financial services sectors were the top buyers of cyber polices; as handlers of personally identifiable information, their exposure was greatest.
But it’s not just about credit card or Social Security numbers any more.
Due to rapid advancements and increasing reliance on technology by businesses of all kinds, cyber risk has grown much bigger and much harder to define. Companies in every industry are waking up to the fact that, as long as they use technology to conduct business in any way, they are vulnerable to cyber risks.
“Especially in the past few years, there’s been a growing demand from non-traditional cyber buyers like manufacturers and nonprofits, for example,” said Evan Fenaroli, Cyber Product Manager, Philadelphia Insurance Companies (PHLY).
Though they recognize their exposure, newer and nontraditional buyers also need to stay…
