Evolution of Cyber Insurance

shutterstock_1095422036

Cyber Insurance, a term that didn’t even exist until the 1990’s, has been developed, studied, transformed and expanded to meet the needs of businesses facing cyber threats, since its inception not all that long ago. As dot-com businesses began to surface, and companies were growing faster than the technology was able keep up with, systems were crashing and data was lost. System downtime was the biggest issue as it severely impacted business growth and the companies’ bottom lines. This first round of Cyber Insurance was developed to protect these companies from viruses, business disruption and data loss.

Over the years, cyber threats evolved and privacy issues became all the rage. Any business holding sensitive data was at a risk for a security breach, whether it was due to system failure or a cyber attack. Financial institutions, healthcare organizations and any other company that captured and stored private information now needed to re-think their cyber insurance and look at coverage for a whole new variety of issues that could arise and require protection.

Fast forward to 2019, the cyber industry has come full circle, right back to where it started over 20 years ago. The days of data disruption and loss are here again as cyber crimes have become more prevalent. As businesses continue to rely more heavily on technology, the risk of cyber attacks, business disruption and loss of information is on the rise again. This new exposure, called “cyber-triggered business interruption risk”, is the latest threat that insurance companies are focusing on to ensure they are providing the right coverage options for their clients.

What does this mean for you? As technology continues to evolve, so do the threats against your businesses. Data loss, system downtime, privacy issues and security breaches can all potentially affect your financial profitability, reputation, and overall business functionality. It can be overwhelming and time consuming to sift through it all. Knowing what coverage you have, what coverage you need, and how to manage it all can be a full-time job.

Fortunately, Lenders’ Risk has been evolving as well and keeping up with this ever-changing cyber landscape. We have partnered with several unique carriers to give you access to the best Network Security and Privacy Insurance solutions available. We understand that each financial institution has different needs, and we have the ability to tailor your policy and its limits to minimize your cyber risk. We are here to take the burden off of you and have experts on hand to help you determine exactly what coverage is right for you. Cyber threats are not going away and cannot be ignored, but taking the time to ensure you have the right protection now can save you time, money and many needless headaches. You can learn more about our offerings here, or call one of our agents today so that we can assist you with all of your cyber risk needs and concerns.