Running a business carries a lot of risks, but few are as potentially damaging as a data breach. Simply having a cybersecurity program is not necessarily enough. You also need a financial safety net in case your cybersecurity fails. Cyber insurance coverage can help your organization avoid the consequences of a cyberattack.
If you’re not familiar with data breach insurance, it’s a type of insurance that focuses on a cybercrime’s aftermath. Like other forms of business insurance, it’s designed to protect your company from liabilities. However, this coverage is specifically aimed at shielding you from things like regulatory fines, lawsuits, legal fees, and other expenses that may pop up after a data breach.
Having cybersecurity insurance is an important part of a risk management strategy. Unfortunately, getting this coverage isn’t as easy as heading over to your insurance provider and asking for it. There are certain cybersecurity insurance requirements you have to follow. What requirements you adhere to can determine your premium, policy limits, and whether you qualify for data breach insurance in the first place.
Most providers require policyholders to meet basic IT security standards to qualify for coverage. Here are some of the minimum cybersecurity insurance requirements:
- PCs must have antivirus software installed and up to date
- The company network must be firewall protected
- Data must be backed up regularly using external or cloud storage
- Access permissions must follow a secure provisioning process
It may seem a little strict to enforce cybersecurity insurance requirements, but there’s a reason they exist. Too many companies see this coverage as a way to get around or not have cybersecurity. If the insurance protects you from financial loss, what’s the point of taking extra steps to prevent data theft? This is a shortsighted view as there are plenty of other consequences to experiencing a cyberattack like reputational damage and interruptions to your operations.
When it comes down to it, cyber insurance should be used as an extension to your existing security measures. Think of it like having bandages in your home: You do what you can to avoid hurting yourself, but you still have a bandage if you need it.
The truth is most cybersecurity insurance policies require your company to have solutions before you qualify for coverage. While you can implement your own solutions, it’s better to get expert help. Managed Security Service Providers (MSSPs) like BL King have the experience and knowledge to deliver comprehensive cybersecurity offerings that keep your business covered. The stronger your security posture, the easier it is to get cybersecurity insurance.
These policies are made to meet your company’s specific needs and can offer an array of benefits. These benefits may include:
- Data Breach Coverage: When a data breach happens, most companies are required by law to notify everyone affected. Between security fixes and identity theft protection, this can be expensive. Cybersecurity insurance can be used to help offset those costs.
- Cyber Extortion Defense: Cyberattacks, like ransomware, can be used to withhold your data from you until a ransom is paid. With cyber risk liability insurance, you can recoup these losses.
- Forensic Support: An investigation usually takes place after a cyberattack to learn the origin of the attack and how much damage it caused. Depending on your policy, this insurance can reimburse you for cyber forensics and consultation.
- Peace of Mind: With a risk management solution like this, you can rest easy knowing your company is covered financially.
BL King is an industry leading cybersecurity provider that’s dedicated to protecting your network. We offer all the security solutions your company needs. Additionally, we can help with various compliance requirements like National Institute of Standards and Technology (NIST) and Defense Federal Acquisition Regulation Supplement (DFARS).
Contact us today to learn more.