Do You Have Cyber-Risk Insurance? Enough?

A recent study estimates that a coordinated global cyber attack (think Wannacry, but not geographically bounded) could cause economic damages of between $85 billion and $193 billion.

The investigation was conducted by Lloyds of London and Aon Insurance as a “stress test” of the industry.

Claims would likely include everything from business interruption to incident response costs.

Total claims estimated to be paid by the insurance companies range from $10 billion to $27 billion.

That means that industry is on the hook for between $75 billion and $166 billion.

That is going to come out of victim companies’ checkbooks.

Are you ready to write a check for $166 billion?  How about $75 billion?

They estimate the biggest losses would be in retail, healthcare, manufacturing and banking.

Countries that are more service oriented – like the United States – would suffer more damage and have higher losses.

So there are a couple of questions –

  1. Do you have cyber insurance?
  2. Do you have enough cyber insurance?
  3. Can you make up the loss shortfall out of your checkbook?

One last thought.  Are you sure that the coverage that you do have matches the risk that you are exposed to?  Given that every policy is different, you might want to look into that too.  We can help.

Information for this post came from Reuters,

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