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How to Ensure Cyber Insurance is a Good Value

How to Ensure Cyber Insurance is a Good Value

According to a recent study, 34% of businesses now carry Cyber Security Insurance. This percentage continues to rise year to year as the cyber security risks also continue to rise.  According to a 2020 survey posted on the number one threat to businesses is a cyber incident.  Cyber incidents exceeded changing markets, pandemics, climate change, new technology and all other threats as the leading threat to businesses today.

Are your cyber security defenses up to date? Many businesses who answer this question negatively, turn to cyber security insurance to mitigate the risk.  The logic is that if the business is not properly protected, at least they can rely on the insurance in case of a breach or other cyber security incident.  This is flawed thinking. Many cyber security policies have exclusions so that “due care” is required for payment.  Some high-profile examples of businesses not receiving the payout the expected include Sony and PF Chang’s. Sony went through an extensive legal battle to settle what their cyber security policy would actually cover.  PF Chang’s was left holding the bag for a PCI compliance penalty because a stipulation in their policy required being properly up to date with regulatory compliance. (Click here for other examples in a NY Times article)

We can’t forget that insurance companies are for-profit businesses.  Their business model is to pay-out as little as they can as is the case with all insurance models. The exclusions section of your Cyber Security Policy will be an important section to review and understand. For some the price of a cyber security policy could go a long ways toward actually securing the network. That is a decision point for businesses. Is a cyber security policy actually money well spent? Would bolstering your defenses actually be a wiser choice?

How do you make sure you get paid on a claim?  Your business will need to show “due care” as mentioned above. Due care means documentation. As a business you need to be able to show documentation of what you have put in place for cyber security and what your future plans are as well. Couple that with a good policy that has reasonable exclusions and you increase would chances of receiving a payout.

Colden Company is pleased to announce our partnership with Kaseya and Chubb InsuranceOur program combines a cyber security insurance policy with our cyber security program.  Enrollment in the program allows your business to progress toward due care while getting an affordable cyber security policy that covers your business properly. The combination of the two in one program dramatically increases your chances of receiving a payout in the event of a breach, giving you the confidence that your policy will be there for you should you need it.  Of course, following the cyber security program will also decrease the chances that you will have an incident in the first place with better security in place.

If you are interested in discussing this program with us, please reach out to us at (888) 600-4560 or email us at



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