CYBER INSURANCE – DO YOU REALLY NEED IT?

The short answer: yes, you probably do.

As cyber threats like ransomware, data breaches and intrusion attempts continue to escalate, so does the need for companies to shift and share the risk. Whether you’re an agent, TSD, MSP, MVNO or cloud service provider, chances are you’re already seeing cyber insurance emerge as a contract requirement. And if you haven’t yet – expect it soon.

Increasingly, service providers and trusted advisors are being asked to show proof of coverage as part of IT, telecom and cloud contracts. For example, if you work with healthcare clients, their Business Associate Agreement (BAA) likely requires cyber liability coverage. And if you access a network or portal – even with encrypted remote access credentials – you could be viewed as a potential point of entry for a cyberattack.

This is why we’re seeing growing pressure to carry coverage – and not just basic coverage. A $5 million policy is now considered the minimum in many cases, with some contracts demanding limits as high as $10 million or more.

What determines how much you need? It often comes down to your role in the network and the potential exposure you represent. The more access you have to sensitive systems or data, the higher the coverage your customers and partners will expect.

Cyber insurance is also showing up in Information Security Addendums (ISAs) and Data Processing Agreements (DPAs), which are increasingly part of standard contracting processes. If you’ve seen these acronyms pop up in redlines or vendor onboarding portals, you’re not alone.

At Bronston Legal, we help our clients navigate these requirements so you’re not left scrambling mid-contract. From advising on cyber insurance obligations to negotiating ISAs and DPAs, we make sure your legal position is covered just as thoroughly as your cyber risk.

Have questions about cyber insurance and compliance in your contracts?

Let’s talk. We’ll help you stay protected – and competitive.