Cybersecurity incidents aren’t unavoidable in the current digital world, despite the fact that organizational compliance and security processes are growing more robust and complex.
Every year, the number of ransomware attacks has been continuously rising. According to recent research, cybercrime grew in the US by over 70% between 2019 and 2021.
The overall cost of all cyberattacks in the recent past has reached $6 trillion. Only cyber insurance enabled the affected companies to survive. And as the pressure of claims on insurance companies has increased, they have started looking for ways to exert some control over the risk.
Generally speaking, cyber insurance providers want to know about the administrative, electronic, and physical security measures you have in place to secure your customers, systems, and data. An IT service provider like XO and an insurance broker can be of assistance since certain cyber insurance providers may request an audit of your IT environment to verify your claims. First, let us start with understanding what exactly cyber insurance is:
What Is Cyber Insurance?
It is a contract between an insurer and a business. It is meant to guard against any damages brought on by network-based events. It is made to safeguard companies against the effects of cyberattacks. It reduces the risk exposure by covering costs after a cyber breach has happened. To put it another way, cyber insurance pays for the costs and legal fees related to cyber breaches, which may involve data theft, system hacking, and the loss of crucial information for a business.
Cyber Insurance Lays Stricter Terms and Exclusions
Cyber insurers are not jumping into every opportunity to offer essential cyber insurance. In particular, reinsurers and insurers are slowing down to evaluate their risk appetite. Additionally, these service providers have begun to demand additional documentation in order to assess the client’s cyber programs.
In an effort to better comprehend the inherent risk that an organization is exposed to, insurers collaborate closely with cybersecurity experts. Ultimately, companies that don’t provide adequate documentation or don’t have the necessary controls might not be covered. Alternately, the company might have to pay higher premiums or risk having the account’s coverage limitations reduced.
You need MFA and other security measures in place to qualify for cyber insurance. Here’s a list of measures you need in place:
Multi-Factor Authentication (MFA)
A login feature called multi-factor authentication aids in verifying your identity when you sign in. It defends against identity-based attacks, which are basically attempting to access an account by unauthorized persons. This often occurs as a result of poor password management.
Multi-factor authentication adds an extra step to the login process that can prevent a cyberattack. MFA will prevent a third party from logging in even if they have your login credentials.
Your mobile device receives a push notice or random code when MFA is enabled. Using the prompt on your mobile device, you enter the code or confirm the login. The procedure is completed in a few seconds. All cloud and VPN services should have MFA enabled.
High Level Of Network Security
The level of network security at a client organization will be taken into account by insurance companies when determining rates. Given this, businesses should spend money on network security by taking precautions like getting a strong firewall and conducting regular security training sessions about phishing and ransomware.
Backups
Since ransomware is still on the rise, most businesses now understand how important it is to have a solid backup strategy, especially for important data. Here are a few suggestions:
- Must be encrypted
- Periodic full backups should precede incremental backup periods that are dependent on data changes.
- Logically separate backups from the network
- To make sure backups are functioning properly, IT should establish a schedule for testing data restoration.
Strong Password Policy
A password policy is a set of guidelines designed to safeguard accounts by requiring users to create secure passwords and adhere to its usage guidelines. The cybersecurity protocols of a business sometimes include password policies. There are some rules that a password policy must contain:
- How often old passwords can be reused?
- How long users must keep a password before they can change it?
- How long a password must be to be used?
- What the password can contain, and how many character types it must use?
- How often reset passwords?
- Automatically lock and account for a specified number of minutes after a specified number of failed logins
Regular Updates And Patches
You will need to have an established strategy for updates and patches. The sheer speed and the number of cyberattacks necessitate constant upgrades and patches.
Bottom Line
Work with your insurance broker to obtain the precise requirements list you will be employing as each insurance company will have its own set of guidelines.
