Cyber Security Today, Sept. 6, 2023 – Advice on cyber insurance

Share post:

Advice on cyber insurance.

Welcome to Cyber Security Today. It’s Wednesday, September 6th, 2023. I’m Howard Solomon, contributing reporter on cybersecurity for and in the U.S.

Cyb er Security Today on Amazon Alexa Cyber Security Today on Google Podcasts Subscribe to Cyber Security Today on Apple Podcasts

Is your organization having trouble getting cyber insurance? Having trouble keeping cyber insurance? Having trouble getting a claim accepted under your cyber insurance? You’re not alone, according to Delinea’s latest State of Cyber Insurance Report. It surveyed 300 American organizations. Seventy-nine per cent of respondents said their insurance costs increased when it came time to renew. And of those, 67 per cent saw an increase on their premiums of at least 50 per cent. Almost all had to purchase at least one new security solution to get insurance. And some companies found it took six months or more to get or renew cyber insurance.

But look at things from the insurers’ point of view. Of those surveyed, 47 per cent of firms had to use their cyber insurance more than once. And, as everyone knows, the number of cyber attacks are increasing, as are recovery costs.

Small wonder insurers are increasing the number of exclusions in policies that allow them to refuse to pay a claim. Things like, the organization lacked IT security protocols, employees didn’t follow compliance procedures, the breach was caused by human error or the attack can be considered an act of war by a foreign government.

Large companies that can afford to spend on cybersecurity have an advantage over smaller ones. Only eight per cent of large organizations surveyed said were denied coverage. By comparison, 28 per cent of smaller firms said they couldn’t get cyber insurance. The top reason small companies were denied a policy is they didn’t have adequate security controls.

There are some lessons from the report. First, remember that cyber insurance is only a safety net that covers certain expenses. Cyber insurance is not cybersecurity. Second, the bar for security controls demanded by insurers is higher than ever, which may require spending on technical solutions and hiring skilled resources. Third, have your lawyer read the fine print of the policy before signing. There may be so many exclusions a policy isn’t worth it. Or, get insurance but have a rainy day fund for situations that won’t be covered.

A commentator for the SANS Institute had one thought that caught my eye: Firms should build a superb cybersecurity program and use that as an argument to get a discount on the premium. Or, look at spending and creating security policies as self-insurance.

Follow Cyber Security Today on Apple Podcasts, Google Podcasts or add us to your Flash Briefing on your smart speaker.

The post Cyber Security Today, Sept. 6, 2023 – Advice on cyber insurance first appeared on IT World Canada.
Howard Solomon
Howard Solomon
Currently a freelance writer, I'm the former editor of and Computing Canada. An IT journalist since 1997, I've written for several of ITWC's sister publications including and Computer Dealer News. Before that I was a staff reporter at the Calgary Herald and the Brampton (Ont.) Daily Times.

Featured Tech Jobs


Related articles

Cyber Security Today, Week in Review for the week ending Friday, Sept. 29, 2023

This episode features discussion on October Security Awareness Month, ransomware, teenage hackers and the start of hearings into proposed Canadian privacy a

Admins urged to quickly patch holes in WS_FTP file transfer server

This is the fourth file transfer application -- and the second from Progress Software -- to recently face critical vulne

Cyber Security Today, Sept. 29, 2023 – Protect your routers from this attacker, new open-source malware packages found, and more

This episode reports on a China-based group that specializes in hacking branch office routers of major

Champagne squeezed to produce proposed amendments on privacy, AI bills

Opposition gives government five business days to produce proposed

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways