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Why Cyber Insurance

What you need to know about Cyber Security Insurance

What Is Cyber Insurance?

Cyber insurance is an insurance product designed to help businesses hedge against the potentially devastating effects of cybercrimes such as malware, ransomware, distributed denial-of-service (DDoS) attacks, or any other method used to compromise a network and sensitive data. Also referred to as cyber risk insurance or cybersecurity insurance, these products are personalized to help a company mitigate specific risks.

Do I need cyber insurance?

Most likely, you do. As the number of applications, devices, etc. increases, an organization becomes more vulnerable to attacks. Just like businesses insure against business problems, natural disasters, and physical risks, they need insurance coverage for cyber risks as well.

If a costly breach occurs, your company may not have the resources on hand to combat these issues or recuperate losses. Cybersecurity insurance can provide support, so these attacks do not cripple your business.

What does cyber insurance cover?

Most cyber insurance plans cover a broad range of cyber risk losses that may unexpectedly arise from cyberattacks. In addition, some plans can offer coverage for physical damage to hardware or coverage for business income loss. Plans can be personalized depending on your current business security posture.

Can I replace cybersecurity defense with cyber insurance?

No. Cyber risk insurance can be a great way to mitigate the damage caused by a breach, but it should complement cybersecurity technology as part of an overall cyber risk management plan.

Do you practice cyber insurance Hygiene?

Cyber risk insurers analyze the strength of a company’s cybersecurity posture before issuing any policy. Strong security postures allow for better coverage and, in some cases, access to enhancement coverages. Fragmented enterprise security approaches can make it difficult for insurers to fully understand an organization’s security posture. This can result in inadequate or poorly targeted insurance purchases by insured companies.

If your business has not invested in the appropriate cybersecurity solutions, then you may not qualify for insurance, or it could be limited and expensive.

Insurance companies today are focused on a company’s ability to prevent, mitigate, and respond to ransomware attacks.

The ability to obtain coverage is increasingly dependent on cyber hygiene. Here is a snapshot of the most critical items today that insurance companies frequently want you to have.

Multi-Factor Authentication

  • Remote access to network
  • Remote access to email
  • Privileged user access
  • Encrypted backups
  • Device trust

Data Backup & Recovery

  • Regularly scheduled
  • Tested restoration
  • Encrypted & separate from network (offline/air-gapped)
  • Incident response & Disaster recovery planning

Additional Controls of Concern

  • Patching cadence
  • Endpoint Detection & Response tool implemented
  • Employee training
  • Email filtering & validation process
  • Privileged account management
  • (PAM) software

Be Prepared

These practices go into a strong security strategy that insurance companies are looking for. To determine what coverage is necessary, cyber liability insurers calculate cost based on a variety of risk factors. Often among them are industry, data coverage and, most importantly, the security measures already in place. These providers want to ensure the clients are taking fundamental safety measures to protect its systems and users.

Ask Questions

If you would like an assessment of your Cyber Security Posture or would like to speak with us about your Cyber Security concerns, please click below and we will contact you.