September 6, 2024

Gary Perkins, Chief Information Security Officer

In this landscape, organizations need a multi-faceted approach that includes prevention, detection, and response capabilities. A warranty tied to a comprehensive security solution supports this approach, providing both technological protection and financial assurance.

The Trouble with Insurance

Cyber insurers are increasingly being viewed with skepticism by organizations seeking protection against digital threats. While cyber insurance may seem like a safety net, it often comes with significant drawbacks that make it less appealing than alternative options, such as warranties.

One of the primary issues with cyber insurance is the rising cost of premiums. As cyber-attacks become more frequent and sophisticated, insurers are hiking up their rates to mitigate their own risks. This leaves organizations facing ever-increasing expenses for coverage that may not fully protect them when they need it most. The fine print in cyber insurance policies can be a minefield of conditions and exclusions. Many policies have strict requirements that must be met before a claim can be made, potentially leaving organizations vulnerable if they fail to meet every criterion. For instance, some insurers mandate the use of specific security measures or require organizations to maintain certain levels of cybersecurity hygiene. Failure to comply with these conditions could result in denied claims, even in the event of a significant breach. Furthermore, cyber insurance policies often dictate the terms of incident response. Insurers may require organizations to use designated teams for remediation or specific individuals to lead the repair process. This lack of flexibility can be problematic, as it may not align with an organization’s existing incident response plans or preferred vendors. It can also lead to delays in addressing the breach, potentially exacerbating the damage.

Warranties for Digital Peace of Mind

In contrast, warranties like the one offered with the CHECKLIGHT endpoint security solution provide a more straightforward and potentially more beneficial option. The warranty offers up to $250,000 in the event that CHECKLIGHT fails to notify the organization of a security incident. This approach aligns the interests of the security provider with those of the organization, encouraging ongoing vigilance and improvement of the security solution. A warranty of this nature doesn’t come with the same complex conditions and rising costs associated with cyber insurance. It’s a simpler, more transparent arrangement that provides peace of mind without the need to navigate complex policy terms or face unexpected premium increases. Moreover, the warranty approach encourages a more holistic view of cybersecurity. While it offers financial protection, it also emphasizes the importance of prevention, detection, and response. CHECKLIGHT’s underlying technology constantly monitors endpoints for signs of malicious activity and ensures that security controls are in place. This proactive approach can help organizations reduce their overall risk profile.

It’s crucial to remember that no organization is immune to cyber attacks. The question isn’t if an attack will occur, but when. In this landscape, organizations need a multi-faceted approach that includes prevention, detection, and response capabilities. A warranty tied to a comprehensive security solution supports this approach, providing both technological protection and financial assurance.

While cyber insurance may seem like a comprehensive solution, the reality is often far more complex and potentially disappointing. A warranty tied to a robust security solution offers a more straightforward, aligned, and potentially more valuable option for organizations seeking to protect themselves in today’s threat landscape.

About the Author

Gary Perkins is the Chief Information Security Officer at CISO Global. With 20+ years of industry leadership, Gary’s experience spans both the public and private sectors. Most recently, he served as the Chief Information Security Officer for all of British Columbia. Previously, he served as Chief of Staff for the Chief Security Office at Canadian multinational publicly traded holding company and conglomerate, Telus.

As CISO, Gary drives cybersecurity strategies and risk management initiatives. He holds a Master of Business Administration (MBA) in the Management of Technology and Bachelor of Arts in Psychology from Simon Fraser University in British Columbia, as well as a Diploma in Criminology from Kwantlen Polytechnic University. Additionally, Gary has earned more than 22 industry-related certifications and awards and serves on numerous boards and councils.

The post Cyber Insurers Are Not Your Friend – Why a Warranty May Be a Better Option appeared first on CISO Global.

*** This is a Security Bloggers Network syndicated blog from CISO Global authored by hmeyers. Read the original post at: https://www.ciso.inc/blog-posts/cyber-insurers-are-not-your-friend-why-a-warranty-may-be-a-better-option/