July 22, 2022 | By stephen

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Are You Eligible For Cyber Insurance?

• Cybersecurity

Cyber insurance is a growing segment in the insurance market, but adoption is still low.  According to a survey by the Insurance Information Institute, less than half (40%) of small businesses report having cyber liability coverage. Even within larger companies, the adoption rate of cyber insurance remains low because many business owners are either unaware of its existence or are intimidated by the cost and complexity of procuring it.

Buying cyber insurance isn’t like buying a vehicle, home, or business liability coverage from an agent. Cyber rates are based on projected and previous losses and claims, the prospect’s risk profile, and other risk-related factors. To learn more about cyber security eligibility requirements, read on.

Why Do You Need Cyber Insurance?

When hackers make off with your customer’s personal data, it’s bad news for your company and customers. In the aftermath of a cyber attack, businesses are left to pick up the pieces and figure out how best to move forward. Some lose customers. On the other hand, 60% of small companies go out of business within six months following a data breach or cyber attack.

That’s where cyber insurance comes into play. Cyber insurance can help you recover after an attack by covering some or all of the costs associated with cleaning up after a breach. In addition, insurance may cover lost productivity and customers.

So, How Do I Get Insured?

Your cybersecurity system will need to go through a similar examination as you would if applying for life or health insurance. To protect their own interests and assets, cyber insurers require that organizations follow a set of standards and best practices before issuing a policy.

Marsh McLennan Agency (MMA), which services global clients, reports 12 security controls considered essential, but five considered the most critical for coverage

• Multi-factor authentication: A layered approach to data and application security where a user must show two or more credentials to log in.
• Endpoint detection: A system that continuously monitors end-user devices for ransomware and malware.
• Reliable backups: Backups that are secure, encrypted, and tested.
• Privileged access management: An information security method that protects special user IDs.
• Email filtering and web security: A system that filters harmful emails or websites.

Other Essential Security Controls:

• Patch management and vulnerability management
• Cyber incidence response planning and testing
• Awareness training
• Hardening techniques
• Logging and monitoring network protections
• End-of-life systems protections
• Vendor supply chain risk management

Investing In Your IT Solutions Is Key.

The good news is that your investment in cyber security solutions and IT services will increase your eligibility. Also, your business will be better protected if it meets cyber insurance company criteria.

At LeadingIT, we are familiar with cyber insurance and know what it takes to get insured. We offer small business IT support and managed IT services to keep your company up-to-date on best practices, minimizing your cyber risks and increasing cyber insurance eligibility. Check out our blog and educational resources to learn more about best practices and cyber insurance eligibility.

LeadingIT offers 24/7, all-inclusive, fast, and friendly technology and cybersecurity support for nonprofits, manufacturers, schools, accounting firms, religious organizations, government, and law offices with 10-200 employees across the Chicagoland area.