Devin Noe, from Embroker, spoke at a recent Paubox Social Mixer event, emphasizing that the insurance application is a living part of a policy, and the information provided on it matters.
Why it matters:
As cyber threats and data breaches continue to rise in the healthcare industry, covered entities and organizations need to take cyber liability insurance more seriously. The process of obtaining adequate coverage is a delicate one that demands honesty and transparency. Being forthcoming about an organization's security measures and practices is crucial to ensuring they receive the proper protection in case of cyber incidents.
What they're saying:
With companies growing in complexity, it's vital to develop a relationship with a broker who can understand the nuances of the organization and negotiate for the right endorsements and underwriting.
"Your application is a living part of your policy. So what you said on your application does matter," Devin Noe explained. "It's in your best interest to be transparent."
Insurance providers are increasingly employing artificial intelligence and running pen tests to analyze applicants' websites and systems beyond the information shared on the application. The industry is moving towards a more digital experience, and the applications are becoming somewhat similar across the board. In such a scenario, maintaining transparency by providing accurate information and documentation about an organization's cybersecurity posture is in their best interest.
The importance of documentation:
Noe urged organizations to keep the proper procedures and documents in place, as it can only help them. Understanding what the policy covers and having open discussions with brokers about specific scenarios can offer peace of mind and ensure appropriate coverage.
Noe related anecdotes where organizations failed to disclose their business details fully and ended up with policies that excluded their real-world needs. This highlights the significance of transparency and asking questions about coverage to avoid pitfalls.
The bottom line:
Transparency with insurers is essential for healthcare organizations and covered entities to obtain appropriate cyber liability insurance coverage. As the industry embraces AI and digitization, it becomes even more crucial for organizations to maintain accurate documentation and engage in open conversations with brokers to ensure they are adequately protected against cyber threats.
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Dean Levitt
