Cybersecurity Insurance – Are you covered? Part 1
In this series, we are looking at the built-in Cybersecurity Insurance traps for your business – no matter the size. Business Insurance Cybersecurity Riders aren’t the same as full Cybersecurity Insurance, but they are a good starting point to up your security game.
Dedicated Cybersecurity Insurance providers are few, but Cybersecurity Riders on your business or personal policies are very common and lead you to believe that “you’re covered.” I’ve been exploring this with my customers and the local Insurance Agents. I’ve found that the local agents are really good with general business, auto, and life related policies, but their understanding of a cybersecurity rider is lackluster at best.
Chances of actually being covered in a cybersecurity event are exceedingly small and the insurance company will come after whomever you name as your IT (computer) specialist. Especially if that vendor is operating as a “MSP” – Managed Service Provider. That’s the nerds you hire to come into your business and “just take care of it.” You can even be the primary caregiver to your network and have them come in as an assist. This is commonly referred to as “Co-Location MSP”. Insurance won’t care – their primary job is to reduce the amount they have to pay out.
Managed Service Provider Definition: A managed service provider (MSP) is a third-party company that remotely manages a customer’s information technology (IT) infrastructure and end-user systems. Small and medium-sized businesses (SMBs), nonprofits and government agencies hire MSPs to perform a defined set of day-to-day management services. These services may include network and infrastructure management, security and monitoring. Source: https://www.techtarget.com/searchitchannel/definition/managed-service-provider
One of our partner companies – Ben Yarbrough from Calyptix – has posted an excellent article on ChannelPro Network for MSPs (like daviestrek) to evaluate their security stance and posture with clients to make sure the client AND the MSP are covered in the event of a disaster. “Cyber Insurance Litigation: 3 Pitfalls Every MSP Needs to Understand” is a great article with a number of points worth taking a second look at.
