A company is hit by ransomware every 40 seconds somewhere in the world, thanks to the rise of ransomware-as-a-service model that is available ‘on demand’ to criminal gangs who increasingly target businesses. To date, 2017 has seen this trend play out in full force, with high-profile attacks such as Petya and WannaCry.
While they are increasingly a necessity for businesses, cyber insurance providers are struggling to come up with products that can cover all the aspects, including investigation, liability, cost and insurance cover or claims, says Sanchit Vir Gogia, Chief Analyst, Founder & CEO of Greyhound. “Cyber insurance is complex. A forensic probe is an expensive exercise, so who will bear its cost remains a question. Even the factors that determine business losses vary and importantly the definition of “business loss’’ remain highly ambiguous.”
Most companies are confused between cyber liability insurance coverage (CLIC) and the errors and omissions (E&O) insurance, Gogia said, citing data from an upcoming Greyhound survey, State of Cyber Insurance 2017. Some 68% of organisations surveyed mixed up CLIC and E&O with just 12% having clarity on cyber insurance. CLIC covers technology related losses, while E&O, also known as a professional liability insurance, protects against losses from negligence claims made by a client.
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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Firm. To read more about him, click here.
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