Having the right insurance policy provides your business with the resources and resiliency it needs to recover from a cybersecurity incident
By now, we hope you know that cybersecurity risk is increasing among the small business community. The most recent research shows that over 70% of cyberattacks are now targeting small and midsized businesses, who are even less equipped to deal with catastrophic downtime and losses than enterprises.
While good cybersecurity strategies are the first step in keeping your business safe from attack, there’s other strategies you can employ to protect yourself, like purchasing cybersecurity liability insurance.
Why Cybersecurity Insurance is Important
There are two primary ways that cybersecurity liability insurance helps businesses deal with the fallout of a cyberattack.
Mitigate the Direct Costs of Security Breaches
Cybersecurity breaches are expensive, and the costs has been rising steadily over recent years.
IBM and the Ponemon institute pegged the average cost of a serious cyberattack attack in the United States at $8.19 million dollars. Even smaller attacks can still do major financial damage, especially in regulated industries, as the cost of a single data record currently stands at about $150.
For a relatively low lost annual, cybersecurity liability insurance provides your business with financial assurance that those loses don’t undermine your whole business.
Some of the direct costs of cyberattack that insurance can help you with
- Payment of ransomware fees
- Data restoration costs
- IT forensic and network recovery costs
Manage the Intangible Effects of Cyberattack
There are many important, intangible effects of cybersecurity attack that businesses need to worry about as well. For example, reputational damage and lowered employee morale are important, often overlooked impacts of cyberattack, both of which cybersecurity insurance can help you manage.
Insurance can be crucial restoring customer confidence in your business
- Help sending timely breach notifications to consumers
- Set up customer call centers to field concerns and answer questions
- Hire public relationships professionals to help you strategically rebuild your brand
Navigate the Complex Insurance Process with Ease
Purchasing cybersecurity insurance can be a confusing prospect, which is why businesses throughout Albany, New York and Charlotte, North Carolina leverage our expertise to make the process easier and less complex.
Choosing the Right Insurance Policy for Your Needs
Because it’s a relatively new field, cybersecurity liability insurance is being marketed in several different ways, with important differences between each policies. You will likely want a partner to help you define your needs and navigate the process of finding the best insurance policy for your business.
Some of the popular insurance options you may encounter when choosing a policy include:
- Business Interruption and Remediation
This type of coverage will meet the basic costs associated with remediating the damage of a cyberattack. These policies are broad, covering a range of effects, including data breach, malware infection, network security failure, and others.
- Privacy Liability
These policies protect companies that handle personally identifiable information (PII), like those in the healthcare industry. These organization expose themselves to great legal liability, from both government regulators and private litigation, if PII is exposed to the public during a data breach.
- Regulatory Defense
Many compliance standards, such as the popular PCI-DSS which applies to any business that accept credit card payment, feature strict fines for non-compliance. These insurance policies protect you from investigation, assessments, and penalties that occur as a result of a regulatory violation.
- Cyber Terrorism and Extortion
While ransomware attacks have declined in recent years, the average cost of a successful ransomware attack has continued to increase, leading many businesses to seek insurance that protects them in case they decide to pay criminals to unlock data.
It’s important to know that insurers are becoming tougher in defining which type of claims are worthy of reimbursement, and which are not. Before you should purchase your policy, you must make sure that you have a firm grasp on the IT concepts involved, that the policy aligns with your understanding, and that the relevant first and third-party losses are all properly accounted for.
Some things to consider here include:
- When is the coverage triggered?
- Is intentional conduct required, or is employee error covered as well?
- How is corporate information defined, does it insure all your relevant data?
The many complexities of the insurance process can easily overwhelm an unprepared business, which is why many reach out to a technology partner, like Complete Network, to help them navigate the process.
Audits as a Basis for Cybersecurity Insurance
Many cybersecurity insurance brokers will require a third-party security audit in order to qualify for a policy. While unprepared businesses may view this audit as a cause for concern, with Complete Network by your side, the required security audit can be an opportunity to gain a deeper understanding of your cybersecurity vulnerabilities and strengthen protections.
Our cybersecurity audits help businesses demonstrate that they’ve done everything possible to meet the standards laid out by an insurer, while minimizing the stress on their operations and staff.
|Check to see if systems have been properly patched and updated||Scan network perimeters for known vulnerabilities||Locate security issues within cloud software and services||Secure mobile devices and inspect BYOD policies to prevent data loss||Find extended enterprise and vendor management vulnerabilities|
After we’ve helped you identify your vulnerabilities, we can also help you patch and serious holes in your cyber defenses, putting you on a confident footing to take the next steps in the insurance buying process.
Complete Network Will Guide You Through the Insurance Process
The Complete Network team is here to help. We’ve been helping businesses navigate the path to strong cybersecurity, which includes the right cybersecurity insurance, for over a decade. Working with our team can help ensure that if cyberattack does ever strike, you have a quality policy that offers the right types of protection, and the support of an entire team of skilled engineers to support your recovery.
Are you a business in Albany, New York or Charlotte, North Carolina that’s interested in purchasing cybersecurity liability insurance, but don’t know where to start? We’d be happy to help. You can email us any time at [email protected], or reach us at 877.877.1840. We look forward to being of service!