According to a research commissioned by Wells Fargo Insurance’s Technology, Privacy and Network Risk Practice, nearly half of respondents (44%) have already filed an insurance claim as a result of a breach.
However, while more companies are purchasing cyber security and data privacy insurance, some gaps still remain in incident response plans, making those companies vulnerable to the financial consequences of a data privacy incident.
Not surprisingly, the most common reasons given for purchasing this specialized coverage were to protect the business against financial loss (78%), protect shareholders (64%), and help prepare for data privacy events (61%).
Of those that filed an insurance claim, 96% reported they were satisfied with their coverage, how the claim was handled, and that their policy had enough coverage for expenses and damages.
For almost half of the companies that have cyber and data privacy insurance, the biggest challenges they faced when purchasing the coverage was finding a policy to adequately fit their company’s needs (47%) or the cost (42%) — highlighting the need for an experienced broker to help with this process.
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