Cybersecurity Insurance - The changes and how they impact you

Cybersecurity insurance is still a pretty new concept for many SMBs. It was initially introduced in the 1990s to provide coverage for large enterprises. It covered things like data processing errors and online media. Since that time, the policies for this type of liability coverage have changed.

Today’s cyber insurance policies cover the typical costs of a data breach. Including remediating a malware infection or compromised account. Cybersecurity insurance policies will cover the costs for things like:

· Recovering compromised data

· Repairing computer systems

· Notifying customers about a data breach

· Providing personal identity monitoring

· IT forensics to investigate the breach

· Legal expenses

· Ransomware payments

No one is safe. Even small businesses find they are targets. They often have more to lose than larger enterprises as well. About 60% of small businesses close down within 6 months of a cyber incident.

Demand is High

As costs of security breaches continue to balloon, so does the demand for cybersecurity insurance. Companies of all types are realizing that cyber insurance is critical. It’s as important as their business liability insurance. Without that protection, they can easily go under in the case of a single data breach. With demand increasing, look for more availability of cybersecurity insurance. This also means more policy options, which is good for those seeking coverage.

Premiums are on the up

With the increase in cyberattacks has come an increase in insurance payouts. Insurance companies are increasing premiums to keep up. In 2021, cyber insurance premiums rose by a staggering 74%. The costs from lawsuits, ransomware payouts, and other remediation have driven this increase. Insurance carriers aren’t willing to lose money on cybersecurity policies. Thus, those policies are getting more expensive. This is at the same time as they are more necessary.

It’s Hard to Qualify

Just because you want cybersecurity insurance, doesn’t mean you’ll qualify for it. Qualifications are becoming stiffer. Insurance carriers aren’t willing to take chances. Especially on companies with poor cyber hygiene.

Some of the factors that insurance carriers look at include:

· Network security

· Use of things like multi-factor authentication

· BYOD and device security policies

· Advanced threat protection

· Automated security processes

· Backup and recovery strategy

· Administrative access to systems

· Anti-phishing tactics

· Employee security training

Cyber Essentials could be the answer?

Cybersecurity coverage and insurance applications can be complex. Cyber Essentials will not only ensure your cyber security is of a high standard, it will also provide you with ￡25,000 of insurance policy cover. BZB IT can guide you step by step through the process of obtaining Cyber Essentials - Contact us today

Article used with permission from The Technology Press.