Security Roundtable is a community designed to share best practices, use cases, and expert advice to guide executives on managing cybersecurity risks. In this article, excerpted below, Scott Kannry, CEO of Axio Global, dives into why attention to detail is key when evaluating cyber insurance.
"My title is not meant to suggest that cyber insurance is flawed. To the contrary; it’s a valuable risk transfer instrument that has performed as advertised in the vast majority of loss situations and often provides policyholders with a gateway to a host of response and mitigation providers that otherwise might be too costly or unavailable when most needed. Most articles questioning the viability of the product are usually centered on denied claims from types of insurance policies that were not designed to cover emerging cyber risks, or written by folks whose knowledge of actual policy language harkens back to earlier generation policies that sometimes contained strict stipulations about maintaining consistent levels of security.
Rather, my title intends to raise awareness that 'cyber insurance,' as is commonly offered by the insurance industry, is not an “all-risk” type of policy that covers anything and everything resulting from a cyber event..."