Security breaches are prevalent in all industries and often go undetected and wreak havoc for extended periods. These breaches not only cause irreparable reputational damage but also have signiﬁcant monetary considerations in the form of class-action lawsuits.
Companies should also bear in mind that hackers are not the only source of network risk, employee mishaps, disgruntled current and terminated employees, and loose internal security controls are also to blame. Large and small companies continue to realize that mitigating cyber risk is only part of the solution, transferring the risk through insurance is the missing piece.
Most companies are significantly underprepared in their ability to detect and mitigate a data breach. According to a 2018 Ponemon Institute research study, which surveyed over 2,800 IT professionals on data breach preparedness, 77% of those surveyed stated their organizations do not have a formal cybersecurity incident response plan.
Despite heightened concerns over data breaches, more than three-quarters of organizations do not have a formal process for responding to one. 26% have only an ad-hoc or informal process, and 27% do not apply their incident response plans consistently across the enterprise.
Companies should be cognizant that cyber policies often include coverage gaps in key areas, leaving the organization unduly exposed. The key to a good policy is sufﬁcient coverage at an appropriate cost. Cyber liability insurance is still relatively new to the market and continues to evolve rapidly. UIC has developed extensive in-depth security assessment tools in this area. Creating a 200-point proprietary audit process, UIC has provided dramatic insights into the quality of any coverage currently purchased and serves as a foundation for discussing cyber risk for each entity’s unique exposers. Noted below are a few examples of key cyber coverage points often missed in policies offered on the market today:
Preparation and a solid framework can make all the difference with challenges regarding compliance, insurance, and legal defense matters, UIC has successfully instituted best-in-class protocols for cyber liability insurance, and we can put them to work for your company.
UIC has been and continues to be the leading mining consultant designing its first bespoke manuscript property policy in 1984 for Dome Mines Group.
UIC has provided its consultative services to the largest marina operators in the world and currently advises over 175 marinas.
UIC in the past several years has provided its contract review, risk strategy, and sourcing for various construction projects from 1 billion dollar commercial office building and hotel and convention centers to the latest multi-use residential and commercial in New York City.
UIC has been instrumental in establishing the proper Risk Management foundation for Biotech companies in their early stages.
UIC Inc. was retained to provide an independent risk management audit and was given complete access to all requested information.
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