Cyber ​​insurance requirements: how to keep your policy

According Accenture, more than 68% of business leaders believe their cybersecurity risks are increasing. This really comes as no surprise, especially considering that the data breaches have exposed some 36 billion records in the first half of 2020 alone.

To mitigate some of the costs associated with cyberattacks, organizations must (and in some industries are required to) comply with data privacy laws) to invest in cyber insurance coverage to protect against the risk of cyber threats and data breaches.

Yet, with the severity, frequency and sophistication of cyberattacks increasing year on year, these cyber insurance policies are becoming more expensive and harder to maintain from a business perspective.

To help you out, we’ve created this blog where we look at some of the key things your business should keep in mind to maintain its cyber insurance policy. Before we get into the details, let’s first take a look at what cyber insurance actually is and why it’s important.

Why is cyber insurance important?

A data breach can be extremely damaging to a business. In reality, 60 percent of small and medium-sized businesses cease to exist within six months of a cyberattack.

Although large organizations are unlikely to be forced to collapse, they will suffer serious consequences such as loss of brand reputation, as well as extremely expensive fines. The Ponemon Institute and IBM estimate the average financial loss for a business at around $4.24 million, with 38% of that total coming from lost business.

It’s for these reasons that cyber insurance is such an important precaution for businesses of all sizes and, in some cases, mandated by compliance regulations depending on the industry in which your business operates.

What is cyber insurance?

Cyber ​​insurance, also known as cybersecurity insurance, is a type of professional indemnity insurance that protects a business against cybersecurity risks and data breaches.

In addition to legal fees and expenses, cyber insurance typically helps notify customers of a data breach, restore the personal identity of affected customers, recover compromised data, and repair damaged computer systems or networks.

How to Maintain Your Cyber ​​Insurance

To maintain your policy, there are a series of cyber insurance requirements that your business must meet at all times. Additionally, going above and beyond to convince insurers that your company is doing enough to reasonably protect sensitive data can help reduce your cyber insurance premium.

Here are some data protection and compliance initiatives your business should implement to help you maintain your cyber insurance coverage and benefit from lower premiums:

  • Use multi-factor authentication (MFA)

MFA requires users to provide multiple factors to verify their identity before accessing a network, account, or system. Using multi-factor authentication adds an extra layer of security to your network over the traditional one-time password, and many insurers now require companies to use MFA before insuring them.

Data breaches typically focus on stealing your data, blocking you from accessing that data, and then demanding a ransom from your company to get that data back (and they probably never will even if you send them the ransom). If your data is saved in a separate location, you will avoid blackmail from cybercriminals.

  • Use data discovery software to obtain data inventory

The key to any effective data protection strategy is understanding exactly what data your business has, where it resides and who has access to it. data discovery software shows you your entire environment from one centralized platform, giving your business complete visibility into all the sensitive data you collect and store. Once you know where this data is, you can classify all types of data to create a catalog of your sensitive data.

Maintaining an up-to-date data inventory that categorizes data by type will also demonstrate to insurers that you understand the sensitive data your business has and will help insurers accurately quantify your business risk.

  • Be sure to provide cybersecurity training to employees

Many cybersecurity insurers will ask potential new clients if they regularly provide their employees with cybersecurity training and guidance on best practices. This is because, typically, employees are one of the most common vulnerabilities in an organization’s network. Regular employee training shows insurers that your company is doing everything it can to mitigate the risk employees unknowingly pose.

  • Leverage your security partners to complete security questionnaires

Your business risk is constantly changing and it is important that your cyber insurance policy reflects the systems, threats and vulnerabilities that impact your overall risk. Whether you’re applying for your first policy or working on a renewal, you’ll likely be asked to complete a questionnaire as part of the insurer’s risk assessment. If you outsource IT and security to a managed services partner (MSP), leverage their expertise to complete the questionnaire.

MSPs can easily answer questions about your company’s IT infrastructure, systems configurations, and security processes that you may not be able to answer yourself (without a lot of research).

Want to learn more about cyber insurance policies and how you can better manage them through data discovery and classification?

Book a demo of the Cavelo Cyber ​​Asset Attack Surface Management platform today.

*** This is a syndicated blog from the Security Bloggers Network of Cavelo blog and press release written by Mandy Bachus. Read the original post at: https://www.cavelo.com/blog/cyber-insurance-requirements-how-to-maintain-your-policy


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