If your business has cybersecurity solutions, you may be asking yourself, why is cyber insurance needed? The loss, theft, or compromise of data can substantially affect business operations, reputation, and revenue. From losing customers because of data loss to the liability of covering damage costs incurred by cyber attacks, insurance helps businesses remedy damages and handle the costs of security incidents.
Cyber insurance is needed to protect businesses from the cost of cyber crimes like cyber attacks and data breaches. Adequate insurance coverage is becoming increasingly important for businesses and organizations as the risk of cyber attacks rises.
Continue reading to learn more about cyber insurance and the company’s requirements to qualify for adequate insurance coverage.
What is insurance against cyber attacks?
Cyber security insurance protects businesses and organizations against risks associated with cyber-attacks and data breaches. Businesses with cyber insurance are protected from the costs of cyber attacks impacting IT infrastructure, information governance, and information policy.
Commercial liability policies or standard insurance products often do not cover these areas of risk. This is why it’s important for businesses to seek out an insurance provider specific to cyber security.
Cyber security insurance vs. cyber security defense
Although cyber security insurance and cyber security defense go hand in hand, they are not the same thing; businesses should ensure that they have both secured. Cyber security defense reduces the risk of cyber attacks or data breaches from taking place by implementing security measures to control access to the network. In contrast, cyber security insurance mitigates damages caused by attacks or breaches by assisting with the business’s financial loss.
When finding a cyber security insurance provider, it’s essential to find one that complements the policies, processes, and requirements set in place by your cyber security defense provider. This will allow the two to work together on a baseline of standards that both can understand and conform to.
When a cyber insurance provider analyzes an organization, it examines the security posture to create a policy that aligns with the strength of the security measures already being taken. A stable security posture allows businesses or organizations to obtain better coverage because a weak security posture makes it more difficult for an insurance provider to create a comprehensive approach.
Cyber insurance requirements 2024
Cyber insurance providers often ask that a business or organization meet key cyber security requirements to ensure comprehensive coverage. These components are usually outlined in their policies. They will help both the business and the insurance provider know that every step is being taken to mitigate risks associated with cyber attacks.
Include these standard components in your cybersecurity management checklist to ensure the insurance provider can effectively protect your business:
- Train employees on cybersecurity: Any business’s workforce should understand cybersecurity. Start by organizing training sessions that are accessible to all employees to ensure they know how to protect sensitive data and systems in the workplace.
- Reduce the risk of unauthorized access: Implement access controls and user permissions to prevent unauthorized users from accessing resources.
- Identify areas for potential cyber threats: Conduct regular vulnerability assessments to find areas of concern before an attacker does, reducing the chance of a successful cyber attack.
- Add extra layers of protection: Enforcing multifactor authentication for remote access will ensure that only users who are permitted to use the system can access it.
- Establish a cyber attack response plan: Create and test a comprehensive response plan to common cyber attacks. Determine procedures for detecting, containing, and resolving cyber issues. Include information on how to handle post-incident analysis. We recommend creating this plan on a hard copy and keeping it in an area that is accessible to all employees. Although keeping a file on the server or cloud seems convenient, it will become inaccessible if a cyber attack is actively happening, leaving you with no plan.
- Protect sensitive information: Use encryption to prevent unauthorized access or manipulation of personal identifiable information (PII) and other sensitive data. Make sure to encrypt data at rest and data in transit to ensure comprehensive protection against attacks.
- Monitor infrastructure access: Manage and track privileged user activity to find and respond to potential security threats.
Fulfilling these steps will allow your business or organization to enhance its ability to recover from online threats and ensure comprehensive coverage under your cyber insurance policy.
Find an IT partner to ensure strong cyber insurance coverage
Acquiring high-quality cyber insurance coverage requires more than just meeting the minimum requirements. Your business needs a strong cybersecurity posture that shows your commitment to mitigating threats like cyber attacks and data breaches.
By partnering with Applied Tech, you will have access to experienced IT professionals and comprehensive cybersecurity services to improve and maintain your security posture, making it easier to qualify for effective cyber insurance coverage.
As a partner, Applied Tech will ensure your systems are protected, monitored, and compliant with updated standards to help your business avoid cyber threats and obtain strong cyber insurance. If you need cyber insurance, obtaining cyber security services is the first step. Reach out to Applied Tech today to get started.
About Applied Tech
Applied Tech is a leading IT and cybersecurity services provider dedicated to helping businesses protect their digital assets. Our proactive and strategic services include cloud management, security, productivity, and IT growth strategy. With a team of experienced professionals, we provide unique solutions tailored to your IT needs.
Protect your business with Applied Tech’s fully managed IT services, co-managed support, and security assistance. With IT services focused on your business goals, keep your team productive and your data secure.
