Cybersecurity insurance used to be either prohibitively expensive or a cheap add-on to an existing policy. These days, it has a specialized market and is becoming essential for many organizations.
Many businesses choose cyber insurance as a means to help them recover from a cyberattack if they become victims. Data breaches and ransomware assaults may require specialist knowledge and funds to address, making recovery expensive.
For these reasons, many company owners choose to purchase cybersecurity insurance for financial stability in the event of a catastrophe. Keep in mind, however, that cyber insurance does not cure every problem and will never prevent a cyberattack or data breach.
Just as organizations that house physical property must take security precautions, those that own intellectual property also need to do so. Insurance providers don’t cover just anyone, so you must prove that your company won’t be a liability.
Here are some things to look out for when purchasing cyber insurance, and common reasons why you might be denied.
CYBER INSURANCE FOR YOUR UNIQUE NEEDS
Personal business insurance is not enough. Data loss isn’t even mentioned in most commercial insurance policies. Companies should have coverage that is as distinctive as their company.
Beyond the basics, policyholders may benefit from a variety of upgrades and additions. As a result, you won’t know what to look for unless you are knowledgeable about your options.
There are several additions that protect you from threats, such as social engineering coverage (for employees who are tricked into giving up information or other tasks that assist cybercriminals), reputational damage coverage (often linked to a security breach), and technology bricking (disabling technology equipment that is no longer functional after malware infection).
Make certain you include everything important to you.
COMMON CYBER INSURANCE DISQUALIFIERS
Even if companies prequalify for cyber insurance, they can still be denied. If you have had cyber insurance in the past, it is still possible that you will be denied future coverage. There are a variety of reasons for this.
Poor business continuity and disaster recovery planning
Providers of cyber coverage want a return on their investment. If a provider believes your company will not be able to recover from a catastrophe, it may turn you down.
Effective disaster recovery requires much more than simply having backups. Businesses should have comprehensive disaster preparedness and continuity plans in place in order to ensure their survival.
Poor account security – not using multi-factor authentication
Due to a lack of multi-factor authentication, businesses are frequently unable to obtain cyber insurance coverage. Individual account security is a big factor in determining whether or not cyber insurance will be provided.
Lack of cybersecurity awareness and training
It’s critical to maintain appropriate cybersecurity by training personnel. Employee participation is one of the most important elements of business security. No software can fully protect against human error. Employees must be trained, and this training must be updated as cyberattacks change.
Inadequate endpoint security
More than just an antivirus program is required by most insurance policies. Businesses frequently need endpoint detection and response tools that integrate a variety of security measures.
EVEN IF YOU HAVE CYBER INSURANCE PREQUALIFICATION, YOU MAY STILL BENEFIT FROM CONSULTING WITH AN MSP
It’s frightening to be turned down for cyber insurance, and it’s much more difficult to obtain a policy after being denied once.
Where do you go from here? That’s where your managed service provider can help. 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 do not qualify for a cyber insurance policy, your MSP can assist you in addressing any discovered flaws.
Even if you have a pre-qualification for cyber insurance, you might be turned down. MSPs can assist businesses in meeting the necessary criteria for cyber insurance and in prepping for a potential cyberattack. Don’t go it alone – make sure you have the support you need. Get in touch if we can help!