CLEVELAND, Jan. 30, 2014 /PRNewswire/ -- A key element of any risk management strategy is the transference of risk, and Cyber Liability Insurance (CLI) is becoming an increasingly popular way for organizations to do that. Unfortunately, in many cases these policies provide inadequate, or even zero coverage in the event of a breach.
SecureState, a management consulting firm specializing in information security, is conducting a webinar on Friday, January 31, at 2 p.m., which will cover what business leaders need to know about Cyber Liability Insurance (CLI), and how it can be used to strengthen an organization's overall security risk management strategy.
"After reviewing several policies, and checking them against required security controls, we've found that businesses who have attempted to insure their problems away, rather than building a mature security program are often left holding the bag when they experience a breach," Anthony Catalano, SecureState Senior Advisory Consultant said.
Purchasing a cyber-liability policy is actually a good idea, but these policies are ultimately bound by checklists and attestations that are riddled with misstatement, which is referred to in the insurance industry as material misrepresentation.
"Material misrepresentation is a misstatement to a question asked during the application process that is so important that, had the truth been known, the insurance company would not have issued the policy or would have issued it with a higher premium," Chris Clymer, SecureState Advisory Manager said. "If material misrepresentation is confirmed by the insurance company, it will usually void the policy and coverage retroactively to when the policy was signed."
It's absolutely critical that business vet and understand their policy. Businesses can start by reviewing all the requirements they must uphold in order for the policy to be valid, and by working with their insurer when they have questions.
To learn more about cyber liability and security, register for the webinar: http://engage.securestate.com/cyber-insurance-webinar
SecureState provides premier management consulting information security services for companies internationally. The SecureState team is comprised of several specialties to solve complex business problems including: Advisory Services, Audit & Compliance, Profiling & Penetration, Privacy, Risk Management, and Incident Response.
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