Extract from Jason Tashea’s article ‘Confusing as hell’: Making sense of cyber insurance
When it comes to managing a firm’s cybersecurity risks, password regimens and encrypted backups are not enough. You need cyber insurance.
A Friday morning panel at ABA Techshow entitled “Cyberinsurance: Necessary, Expensive and Confusing as Hell,” attempted to demystify the nascent cyber insurance field while underscoring how vital it is to have some sort of insurance policy in place in case of cyberattacks. Panelists Judy Selby, a cyber insurance consultant and lawyer, and Sharon Nelson, president of Sensei Enterprises, laid out the case for the insurance and the challenges of understanding it.
No matter how good your cybersecurity infrastructure may be, “it can’t stop it all,” said Nelson. She argued that cyber insurance is necessary, “because you are managing an enormous risk.”
Providing background on the relatively new area of cyber insurance, Nelson quoted a PricewaterhouseCoopers report that found one-third of businesses have a cyber insurance policy. Additionally, she noted that policies are being offered by upwards of 60 insurers.