May 8, 2019
We talk to Jason Cobine of Cobine Carmelson business insurance brokers about how and why cyber insurance goes hand-in-hand with cyber security measures and training. Also why CEOs should be particularly aware of targeted attacks and take measures to prevent them happening.
I have many conversations with IT and data security providers and we agree that security can reduce risk yet not remove it. I also have conversations with underwriters and they wouldn’t provide insurance to someone that hasn’t bothered with security. Yet I have heard some security people say that cyber insurance isn’t worth having. They are wrong, it’s definitely worth looking into. Indeed, the requirements of some insurers will compel businesses to invest in security.
The analogy that hits home is one featuring a row of houses. If all the homes have good security, an opportunist will walk on by. You do not want to be the owner of the home that isn’t as secure as its neighbour’s. Yet owners of homes that have good locks still buy insurance. Indeed homeowners with alarms still buy insurance.
Why? Because they are aware that people have learned to bypass them. And they can do without the upheaval and emotional distress resulting from a burglary.