In our modern world of constantly evolving and varied cyber threats. Many organizations consider cyber insurance to help them get back on their feet should they fall victim to a cyber event. In addition, managing incidents like data breaches and ransomware attacks often require specialist knowledge as well as funds. For these reasons, many business owners choose to purchase CI to protect them financially during and after an incident.
In the early days, cyber security insurance cover was either expensive and highly-manuscript or a cheap endorsement on another policy. These days, it has its own niche market and has become a critical need for many businesses.
It’s worth noting, however, that cyber insurance does not solve all cyber-related problems, and it won’t ever prevent a cyberattack or data breach. Just like businesses with physical property need to put appropriate measures in place for security, so do companies with intellectual property.
Unique cyber insurance for a unique business
Generic CI doesn’t cut the mustard. It is rarely suitable on the whole. Of course, there are overlaps in many cyber insurance policies. But it’s advisable for businesses to have a cover that is as unique as their business.
Beyond the basics, there are various additions and enhancements that policies can offer. But, unless you’re aware of them, you won’t know what to look out for. Some examples of improvements are social engineering coverage (employees who are tricked into doing something), reputational damage coverage (which often has a time limit after a security breach), and bricking (replacing technology equipment that can no longer be used following an attack of malware).
Even though a business has been told they qualify for cyber insurance, they can still be turned down. There are many reasons for this, and it can happen to anyone, even if they’ve had CI in the past.
Poor plans for business continuity and disaster recovery
Cyber insurance providers will want a return on investment. If a provider believes your business cannot recover from a disaster in terms of the administrative, physical and technical capabilities, you could be denied a policy. Disaster recovery doesn’t just mean having backups. Businesses need adequate disaster recovery plans to make sure they’re able to survive after a cyber event.
Poor account security–multi-factor authentication
One of the reasons businesses are rejected from cyber insurance, is due to multi-factor authentication. Many providers focus on account security before they offer a policy.
Poor cybersecurity awareness
Training employees is essential for maintaining appropriate cyber security. Unfortunately, employees are one of the weaker areas of security in a business. Employee training is vital because cyberattacks can evolve.
Inadequate endpoint security
Many policies require more than basic antivirus software. Businesses often need to have endpoint detection and response tools that combine several security measures covering a range of detection and prevention techniques.
Using an MSP to assist even if you have cyber insurance prequalification
It’s scary to think about not getting cyber insurance, and once a business has been turned down once, it’s even harder to get a policy. This is where your Managed Service Provider comes in.
By using an MSP to help with cyber insurance prequalification, you’re making sure you have experts looking into everything with an experienced eye. If you’re unlikely to meet the criteria for a CI policy, your MSP can help rectify the areas that need improving, meaning you can then go ahead and secure a policy.
Final Thoughts on Cyber Insurance
Even with cyber insurance prequalification, you could still be denied a CI policy. MSPs are experts in CI and cyber insurance prequalification and can assist businesses in ensuring that they meet all of the necessary criteria. For more information, give us a call today, which shows how weak cyber security can impact business. Finally, get in touch here to schedule your free cyber security business review.