Cyber-attacks reached record numbers in both intrusions and cost in 2021. Cybercriminals are extremely sophisticated, making it difficult for companies to stay ahead of security best practices. Nearly all companies face risk and require coverage, but cyber policies are complex and managing through a breach is even more so.
Last month, Newfront invited leading experts in cybersecurity, privacy, and insurance to discuss security best practices. Panelists, Casie Collignon, Cybersecurity and Privacy, Partner, Baker Hostetler Tyler Gerking, Cybersecurity, Privacy and Insurance Recovery, Partner, Farella Braun + Martel, and M. Scott Koller, Privacy and Data Security, Partner, Baker Hostetler, touched on those and explored market trends, reviewed cyber liability insurance, and shared approaches for rapid response plans.
Here are some of the key takeaways from their conversation:
- Up until 2-3 years ago, the cyber liability marketplace was competitive, it is now tightening with coverages being limited, higher retentions are required, and significant premium increases have occurred.
- After many years of phishing being the leading cause of losses, network intrusion become the leading cause in 2021.
- Ransomware attacks have now become “double extortion” as there is both a ransom to get the encryption key and the threat of data theft with the added peril of making the data public.
- It is important to understand where the threat has come from as that will help in negotiation and resolution.
- It is critical to employ a ransom negotiation firm to help with:
- Don’t make a litigation decision, make a business decision.
- Trust your insurer or broker – report immediately as coverage may depend on the timing of the notification and cooperation.
- Many policies have the requirement that any ransomware payments have the written consent of the insurer.
- Negotiate the difference between demand and ultimate payment (average is close to a 50% discount from initial)
- Clear compliance hurdles for payment (OFAC checks)
- Help with payment itself (Bitcoin or other)
To watch the webinar replay in its entirety, click here.
About the author
Executive Vice President, Regional Managing Director
Linde is responsible for expanding Newfront’s reach across Southern California and throughout the entire Southwest. Her expertise and experience spans Property & Casualty and Employee Benefits, and she is highly skilled at working with clients ranging in size from middle-market to sophisticated large group and large risk. A dedicated inclusion champion, Linde is the Executive Sponsor of Newfront’s emerge ERG and actively works to build an inclusive and safe workplace for all. Connect with Linde on LinkedIn.
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