A new survey has revealed that a very large percentage of businesses have filed against their policies.
When it comes to business coverage, cyber insurance has been increasing quite rapidly in popularity as a results of the many high profile data breaches that have occurred over the last few years.
Unfortunately, while coverage is more common, it’s also being used quite a bit by the companies that have it.
While the idea behind buying a policy is usually to get it just in case, while hoping that it will never actually be needed, this is not turning out to be the case with those who purchase cyber insurance. A the recently released results of a Wells Fargo survey that involved the participation of 100 American large and middle-market companies determined that 85 percent had said that they had bought cyber security and data privacy insurance. At the same time, 44 percent of those who had coverage have already filed a claim due to experiencing a data breach.
This shows that cyber insurance is not the type of policy that is being bought but is never used.
The report issued by Wells Fargo did not actually examine the amount of the claims. That said, another recent study, this one by NetDiligence, has estimated that the average cyber security insurance claim for a large company averaged at about $4.8 million.
The amount that companies are paying in premiums for their cyber liability insurance was also not discussed in the Wells Fargo survey. That is likely because there are a number of different factors that are taken into consideration for calculating the premiums for a policy so the total would vary widely.
Among the factors to be consider include the type of business, the volume of the records maintained by that company (for example, stored personally identifiable information, credit card data, protected health info, and other data of that nature) as well as the security controls that have been implemented by the company.
Still, national practice leader, Dena Cusick, of the Wells Fargo Insurance’s Technology Privacy and Network Risk National Practice explained that for cyber insurance policies “The premium can be as low as $750 for a small, well-managed organization and well into the seven figures for large organizations with significant volumes of data.”