So, why are cyber insurance applications so challenging?
Due to the complex nature of online business, there are numerous aspects to measure. While commercial insurance applications are still thorough and complex in traditional insurance, cyber insurance applications are particularly tricky to fill out, especially for small businesses. Many applicants are uncertain about what information to provide, resulting in misinformation, which leads to claim denials or insurance coverage gaps.
Digital assets, which refer to anything digital that holds value to the business, are critical in preparing for a company’s insurance application.
Examples of digital assets include data, training materials, client information, specialized programs, and cryptocurrency. A digital assets inventory should list and organize all of the digital assets a company possesses while also demonstrating how each asset relates to the company’s revenue, cash flow, or essential business functions. However, manual labor and time are required to prepare a digital assets inventory, which is why many companies don’t realize its importance.
Fortunately, SecondSight’s pre-underwriting solution offers a faster, more accurate way to inventory digital assets.
It provides a clearer picture of a company’s overall risk and risk management, which is vital to share with the insurance company. Knowing what you need is crucial for any business owner who cares about their business inside and out, and it improves the company’s chance of receiving ideal coverage and rates.
A digital assets inventory also provides a better picture of a company’s overall digital risk, which is the unexpected exposure to cybercrime and other consequences of online presence. Calculating digital risk can help identify weak spots, allowing a company to focus on updating and correcting that issue before it leads to catastrophic consequences. For example, if a small product delivery service’s program for sorting and categorizing client data is poorly protected, it could be hacked, and the company could lose its revenue overnight. However, if managers know their program’s weaknesses, they can purchase better security or other systems to protect that information, improving their chances of receiving coverage for cybercrime claims.
Providing a more accurate picture to the insurance company also increases the chances of receiving coverage for cybercrime claims, avoiding potential claims denials.
Cybercriminals are becoming more daring, and many companies are paying ransoms instead of claiming insurance because they might pay more to repair the damage. Detailing and providing the most accurate and clear company data is one of the best ways to avoid these outcomes and the abilities of cybercriminals.
Ultimately, every company should have a clear understanding of their digital assets, their risk factors, and where they stand. SecondSight’s Risk Workbench for pre-underwriting can help any digital company quickly know their standing and understand how it changes over time. Digital assets change frequently, and it’s critical to document them accurately. Digital risk can also be accurately measured and mitigated with the right tools.