If you don’t work within the IT or cybersecurity service industries, cyber liability insurance may be something completely new to you. However, with the rise of remote work and advancing capabilities of hackers across the globe, businesses today would be remiss not to prioritize cybersecurity insurance when planning their yearly budget.
So, what exactly is cyber liability insurance? According to cybersecurity service experts, it’s a type of financial policy that helps make companies large and small whole if they experience an online intrusion event, such as phishing attacks and ransomware. In light of many high-profile breaches over the last few years, such as those experienced by Colonial Pipeline and SolarWinds, we feel it necessary to remind all businesses that it is no longer a question of if your business will become a target but when.
Cyber insurance is available through most major business insurers, such as Beazley, Chubb and Travelers. Most of these insurers have begun treating cyber liability insurance as a standalone product as opposed to a rider or add-on to standard business insurance. Insurers have also started to implement requirements for renewal.
A few examples of things businesses may now be required to do before their cyber liability insurance policy is approved include installing endpoint detection response tools on individual devices and mandating multi-factor authentication for all users. Businesses may also be required to prove to their insurance coverage provider that their off-site data is encrypted. Failure to meet any of these requirements may result in policy denial or in reduced coverage until these requirements are met.
The vast majority of cybersecurity service experts further recommend (and many insurance companies require) that businesses have a breach response plan. This plan should include a directive about the split-second decisions regarding a company’s next move once a breach is discovered.
In a recent podcast, ImageQuest founder and CEO Milton Bartley discussed cyber liability insurance and made a great point: hackers will always find a way around even the toughest cybersecurity measures. That’s because this is a business, and many hackers treat it as such, with some going as far as to have a 1-800 customer service line set up to walk people through removing ransomware… for a fee, of course.
Bartley also noted that the cybersecurity service industry has really started to move forward with a focus on early detection. While prevention is still a priority, early detection is one of the best defenses against major issues. The sooner a breach is suspected and detected, the faster systems can be locked down and data protected.
Ultimately, all businesses should invest in cyber liability insurance. Gone are the days when a data breach was just a theoretical threat. Now, we should all look at cyber intrusions and our digital infrastructure as we do storm damage to our homes. We can’t always prevent them, but the more protections we put into place now, the less damage we will have to recover from when we become a victim.
Need IT assistance? Contact ImageQuest today for more information on managed IT and cybersecurity services.