This is just a reminder to be aware of what is and isn’t covered by your cyber insurance. I highly recommend that you speak with an agent and do a review of the coverages BEFORE it hits the fan. I recently learned that while notification can be the most expensive part of a breach, it’s often not covered by default in the policy. To add to that, cyber insurance is still in its infancy, so coverage is rarely standardized. Don’t blame the insurance companies for this as it’s a very new type of risk, it’s your job to know, with their help, what you are paying for.
Take for example the P.F. Chang’s breach. The $1.7 million cost of defense against customer lawsuits were covered, but the roughly $2 million in fees and fines imposed by credit card issuers to pay for notifications to cardholders, reissuance of credit cards, and other costs was not. It really pays to know what coverage you have.
Erich Kron is the Security Awareness Advocate at KnowBe4, and has over 20 years’ experience in the medical, aerospace manufacturing and defense fields. He is the former security manager for the 2nd Regional Cyber Center-Western Hemisphere.