Why Cyber Insurance Is Important for Your Business

Cyber insurance is becoming an important part of the current business landscape. It will help you in protecting your business from cyber attackers. Cyber insurance will ensure that you are complying with industry regulations. Every business should consider getting cyber insurance. You should look for the best insurance carrier as they can provide the best coverage to your business. Make sure that you are preparing your environment before applying for cyber insurance. This will help you in getting better coverage at lower premiums.

If your business is using technology, then you are prone to a cyber attack. The results of a cyber attack will be catastrophic for your business. Thus, you should consider getting cyber insurance for your business.

Cyber insurance can help your business in recovering after a security breach. It will help you in protecting your company before even a breach occurs. In this article, we are going to talk about the importance of cyber insurance.

Why Cyber insurance is important for your business?

1. Data breach coverage

In case of a data breach, you are required by law to notify all the parties that are affected. This will increase your data breach costs. You need to invest in security fixes. If your user’s identity is stolen, then you need to pay heavy legal fines. Cyber insurance will help you in covering these things. It will ensure that you are safeguarding our information from attackers.

2. Forensics

The forensics team will help you in determining the extent of a data breach. They will help you in checking if your private customer information is leaked. Also, you can get reimbursement if you are insured. This will ensure that you don’t need to pay heavy fines from your pocket. A cyber insurance policy will help you in covering for potential business loss. It will protect your business from extra expenses that can occur during business restoration.

You will also get access to risk-managed services and IT security experts. These resources will help you in preventing a data breach. If you have cyber insurance, then you are ready for dealing with a data breach.

3. Notification requirements

You need to notify your users and other parties involved in the breach. This can cost up to $2 million on average. If you have cyber insurance, then your insurer will help you in notifying your users. You can work with a data breach coach for minimizing the impact of a breach.

4. Lost devices

One problem with the mobile workforce is that your laptops will often leave your workplace. They might get stolen or might get compromised. Due to this, your data can get leaked. Someone might get access to your confidential data. You can’t completely prevent data loss or theft. However, you can take steps for protecting your data.

You can limit the amount of data that you are storing on your devices. Never store any confidential or private data on your laptops. You should also implement procedures for mandating periodic changes and effective passwords. If necessary, then you should store only encrypted data on your devices. This will ensure that your data is secure.

Some cyber insurance plans will include Information security liability coverage. This will provide protection for data loss. It will ensure that you can prevent unauthorized access.

5. Lost data

You are responsible for the data that you are storing. Thus, you should ensure that you are storing the right thing. You might be storing data confidential data in your database. This is even more important if you are operating in healthcare or financial data.

You should understand the data that you are storing in your systems. Make sure that you are creating and testing security policies. You should have document retention procedures for protecting your data.

In case of a data breach, your cyber insurer will help you in recovering. They will cover breach notifications. Also, they will cover your remediation expenses. You can save a lot of legal costs by taking cyber insurance.

How to prepare for Cyber insurance?

If you want to prepare your organization for cyber insurance, then you should first assess the current risk exposure. You should also look for potential vulnerabilities that are present in your network. This process will involve a lot of research. You should have a clear picture of cyber risks. This will help you in coming with an IT security strategy. We are going to share some tips which will help you in preparing for cyber insurance.

1. General Business Information

This category will include information about your company. Your cyber insurer will ask about your organization’s size first. They will ask about your organization’s industry. If you are operating in the healthcare or financial industry, then you need to deal with more regulations. This data will help your cyber insurer in understanding your business needs. It will allow them to create a plan for your business. This will ensure that they can properly protect your business from cyber threats.

This data is very important as it will ensure that your insurer can assess your potential exposures to risks and claims for third-party losses. It will have a direct impact on the amount that you will be paying to the insurer. If you need to deal with more risk, then you need to pay more for your cyber insurance.

Companies that are operating in a high-hazard industry need to pay more money for cyber protection. This is mostly due to the high legal costs associated with data breaches. Thus, you need to provide general business information to your insurer.

2. Information Security

Your data size and sensitivity is also important indicator. It will help your insurer in determining the risk that will be involved in insuring your organization. If you have access to more sensitive data, then you will be a prime target for cyber attackers.

Cyber insurers will typically ask you if you have the capability to track and identify your important data. They will ask about how you are managing your access. Thus, you should ensure that only key members have access to your important data.

They will also ask you about the security measures that you are implementing. You should implement strong security measures like multi-factor authentication and network partitioning. You might be using email authentication measures for protecting your emails.

All this is important for your cyber insurer as it will help them in assessing your IT security level. If your business is already ready for attacks, then your premium will be less. Thus, you should be always ready for an attack. Make sure that you are using the best security solutions available in the market. These measures will help you in protecting your data from attackers.

3. Security awareness

You can’t protect your business network by just implementing the best security solutions. Your data can still get leaked even if you are using the best security solutions. The main thing that you need to work on is your employees. Your employees should become the backbone of your IT security strategy. The cyber insurer will be worried about your organization’s ability to conduct training for your employees and raise cybersecurity awareness.

According to a report from IBM, more than 95% of data breaches happen due to human error. Your machines are already working perfectly. However, your employees can still be tricked by attackers. Thus, your insurers will check the security awareness of your employees. They will ensure that your employees know about the best IT security practices.

If you are working with a good MSP like Bleuwire, then you don’t need to worry about this point. Your MSP will help you in training your employees. This will ensure that your employees know about the best IT security practices.

4. IT Update management

You should update your devices regularly. This will ensure that your devices are working properly. You should also try to automate this process. Your insurers will ask you questions regarding your IT update management.

You should ensure that all your devices are up to date. This will help you in avoiding cyber attacks. Attackers will generally use known attacks for attacking your systems. If your systems are updated, then it will be very difficult to attack your network.

You should also ensure that your IT update policy is automated and centralized. This will help you in freeing up your IT team. Your IT team doesn’t need to manually push an update to your devices.

This is important as managing updates can indicate how you are mitigating threats. If you are properly updating your devices, then it will paint a better picture of your capability. Thus, your cyber insurer will reduce your premiums.

5. IT suppliers

If you are outsourcing IT, then it will help you in saving a lot of money. It will also remove a lot of burden from your IT team. However, this doesn’t mean that you are free from all the responsibilities of an organization. This category will check the reputation and quality of your IT suppliers.

This is very important for your cyber insurer as it will help them in determining the potential risks. If you are working with a good MSP, then your premium will automatically come down. This will ensure that you are ready for every type of attack. Your IT partner will help you in dealing with attacks.

According to a report from Reinmuth, your cyber insurer will feel a greater level of comfort if they already know your IT provider. This will ensure that you are working with someone who can actually manage your IT. Thus, you should look for the best MSP. Experienced MSPs like Bleuwire can help you in network monitoring. This will help you in removing vulnerabilities from your network.

6. Cyber security

Your cyber insurer will also check all the cybersecurity measures that you are taking. They are looking for businesses that are actively participating in reducing their risks. If you have a good IT security plan, then you will get better coverage.

Security is the most important qualification for these cyber insurance policies. If you don’t have good IT security, then you won’t get a good policy. You might need to pay very heavy premiums for insuring your organization against cyber attacks.

If you want to increase your chances of getting lower premiums, then you should collaborate with a good MSP. Experienced MSPs like Bleuwire can help you in increasing your security level. They will help you in monitoring your network. This will ensure that your network is secure. Bleuwire will also help you in creating an IT security strategy for your business. This will ensure that you have a security strategy that you can show to your insurer. Your IT security strategy will help you in protecting your data and network from attackers.

Conclusion

Good preparation will help you in finding the best cyber insurance for your business. Make sure that you can mitigate your risk exposure. This will help you in lowering rates and getting better coverage. Thus, you should start by assessing your network. This will help you in finding a lot of vulnerabilities that are present in your network.

You should also consider working with a good MSP. Experienced MSPs like Bleuwire can help you in securing your network. This is very important for SMBs as they don’t have access to a dedicated IT security team. If you want access to the best IT security professionals, then working with MSPs is the best option. You don’t need to worry about hiring IT security professionals for your business. Bleuwire will also help you in assessing your network. This will be required if you are looking for cyber insurance. You can also reduce your premiums if you are working with a good MSP. Your IT partner will be responsible for protecting your network from attackers. If you need more information regarding IT security services, then you can contact Bleuwire.

Contact us today to learn about Bleuwire™  services and solutions in how we can help your business.