Much like the recent premium increases seen from malpractice insurance carriers, as of 2022 cyber liability insurance carriers also must adjust their policy rates. These rates changes result from some significant changes happening in the cyber liability insurance market, namely an ever-increasing risk of cyber threats and ransomware attacks.
To ensure the increased exposures are adequately covered, cyber liability insurance carriers are implementing stricter underwriting guidelines and adjusting rates. These new practices will affect upcoming cyber liability policy renewals.
If your practice already has cyber coverage in place, that is a great start.
But ahead of your 2022 policy renewal, you must be aware of the cyber liability market changes. It is also vital that your practice implement all cyber security provisions insurance companies recommend for policy renewal.
1) Cyber insurance premiums are increasing, and therefore you should expect and prepare for a change in your policy premium.
2) The following cyber security measures are being strongly recommended for implementation before your renewal:
VPN for remote access into your network
Annual cyber security training provided to all individuals with access to your network or confidential/personal data
Critical patches and updates implemented within two months
Incoming emails scanned for malicious attachments or links
All network devices protected with anti-virus, anti-malware, or endpoint protection software
Confirmation that critical data is backed up regularly
Failure to meet these requirements before your cyber liability renewal may put you at risk of nonrenewal, or you will risk incurring higher premium rates.
Even with these daunting changes ahead, please remember you will continue to receive great coverage as an insured even with the market change and rate increases. Cyber liability insurance carriers remain committed to their insureds and provide valuable client services to help protect your practice from claims.
Carriers can also help insureds set up the new cyber security requirements before their policy renewal. To learn more about the services offered by each carrier, please see our blog, Review Your Cybersecurity Practices Ahead of Your Cyber Liability Policy Renewal.
This market change may cause stress during your renewal process, but please remember we are here to help you through this transition. If you have any questions, please feel free to contact your service specialist, and they will be glad to assist you.