The world of online cyber operations can be complicated.  Add a layer of determining how to adequately anticipate, deter, and recover from attacks, and that world gets appreciably cloudier.  Even to the point where top C-suite executives in major publicly traded companies can hold misperceptions about what their exposure might be, and how their assumptions about protection can be far off the mark.

A report issued by the Federal Reserve Bank of Chicago* cites a survey of chief financial officers at companies with more than $1 billion in revenue that had been performed by a major commercial property insurer.  The survey found that 71% of those CFOs believed their insurer would cover “most or all” of the losses their company would suffer in a cyberattack. However, the damages those CFOs said expected to suffer in such an event are not, in fact, covered by typical cyber and property insurance policies.  

Ambiguities about cyber protection can filter to small- or medium-sized organizations, as well, with just as serious an impact.  A key “value add” for such privately held organizations would be adding insurance-backed cyber resources at the time of loss, to include immediate access to cyber forensics, legal, claims management, and public relations services.  These services would speed up the return to normalcy and protect the insured’s balance sheet and income statement.

In the world of cybersecurity, fully understanding your organization’s exposures, and knowing what the right insurance can and cannot cover – both before and after a breach – only becomes more important with each passing year.  Contact the experts at Evergreen to get a clear picture of your cybersecurity situation.

Copyright 2024 Evergreen Insurance

Evergreen Insurance provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

*  https://www.chicagofed.org/publications/chicago-fed-letter/2019/426