Recently, it’s become more difficult to get cyber insurance coverage because of the enormous increases in cybercrimes. Remote working and digital transformation (using new technologies) without proper risk management are the prime drivers. As a result, cyber insurance claims have skyrocketed. With cybercrime in overdrive, insurance companies face higher risks.
As cybercriminals become more sophisticated, cyberattacks are constantly evolving and changing—very difficult to keep pace with. Today’s risk can be completely different than tomorrow’s risk. A devastating attack could come out of the blue.
Greater vulnerability means that cyber insurance providers have to more selective about who they insure, charge higher premiums to cover the risk, and, potentially, revise the scope of what they cover. Organizations that do not maintain enhanced security measures and protocols to protect their systems and data may find that insurance is no longer available to them.
Despite challenges, business owners should consider getting cybersecurity coverage. The more cyber risk your company can manage through proactive security programs and options that cover at least some of your potential financial loss, the more attractive you are as a cyber insurance client. For example, using multi-factor authentication (MFA) and next-generation endpoint protection have become minimum standards for some underwriters.
How to protect and defend your environment:
- Use data encryption.
- Train and test your employees.
- Use concise access controls and permissions.
- Implement Multi-Factor Authentication (MFA).
- Replace or retire hardware and software that have reached end-of-life.
- Apply the most recent patches and updates to all your applications and appliances as soon as they are available.
- Store your most critical business information on ransomware-resistant backups.
To further reduce your risk, contain and monitor your environment:
- Monitor for stolen or compromised credentials.
- Update and practice your Incident Response Plan (IRP).
- Update and practice your Disaster Recovery Plan (DRP).
- Proactively look for software and system vulnerabilities.
- Perform network segmentation and enforce firewall policy-based boundaries within your environment.
- Implement the latest security controls for your network, cloud platforms, and endpoints.
Finally, consider hiring an external security firm to try to penetrate your network before insurance company experts try. Some insurers will conduct penetration tests on your company to see if their experts can get into your system. If the experts can get in, the insurance provider may:
- turn you down
- allow you to remediate the problems
- be satisfied if you can provide proof that you’re increasing cybersecurity
TEC’s Cybersecurity Experts have the knowledge and the technology to protect your network from attacks from all vectors, including stealth cyberattacks from email- and website-delivered malware and hacker-intrusion attacks. Our Cybersecurity Experts can help your organization reduce its risk, qualify for cyber insurance, and save money on insurance premiums.
TEC Communications is a trusted IT solutions provider.