Cybersecurity insurance: Once optional, now essential
In Information Week, cybersecurity partner Joe Oleksak discusses why cybersecurity insurance can no longer be thought of solely as an “IT responsibility” for business leaders.
Two universal truths have emerged for business and IT leaders across industries. First is that the role of IT is shaped by business need and organizational strategy. To stay ahead, organizations must adapt to secure data and systems in alignment with the fast-paced evolution of technology influenced by the business. Unfortunately, business leaders typically prioritize functionality and efficiency in a vacuum, not understanding the implications of security before moving forward. Consequently, they may rely on cybersecurity insurance as a fallback without fully realizing the potential risks involved.Second, cybersecurity insurance is changing just as rapidly. Traditionally, it served as a safety net, allowing business leaders to rest easy. However, it’s now clearly awakening them with cybersecurity premiums doubling, tripling and even quadrupling.
The stakes are high, whether it’s the Joint Commission warning hospitals to plan to be down for a month or more following an attack, or the startling number of organizations that go out of business after a breach. Underwriters have recognized the trends and are adjusting for risk more appropriately. To secure the most affordable policy and premium pricing, it’s crucial for business leaders to make sure their house is in order.
