Imagine this scenario: You are walking to work one morning. Suddenly, the sky darkens, and it starts pouring rain, but you didn’t bring an umbrella. Won’t you regret not grabbing the umbrella before you needed it? Rain isn’t something we can predict 100%. Nor can security experts predict cyber threats. As the Boy Scouts say, we should be prepared! It would be best to consider getting cybersecurity insurance for the rainy days ahead. Therefore, you must also know about cybersecurity insurance requirements and whether your company can get coverage or not.
Cybersecurity insurance requirements—the details
Did you hear about the recent CDK Global cyberattack? The notorious hacking group BlackSuit owned up to the incident, demanding several million dollars from the software provider.
Did this event impact your business? This large-scale attack disrupted thousands of car dealers across the US, but a solid business insurance policy could’ve dampened the negative impact.
Cyber insurance is your safety net against malicious threats by cybercriminals. It works like your life or health insurance—providing coverage for unfortunate incidents that could happen to any business.
However, getting cyber insurance isn’t as simple as buying candy at the store. You must pass the cybersecurity insurance requirements to become eligible. Do you know what these prerequisites are? Check the following list to find out.
Access Controls
Insurance companies require strong access controls for would-be clients. Selectively authorizing access to systems and sensitive data can help mitigate cyberattacks. It’s best to set permissions based on specific factors, including role, attributes, or discretion.
Multi-factor Authentication (MFA)
Businesses that use cyberspace to store and pull data should require at least two verification steps for every user. Whether through a device, authenticator APP, or biometric, MFA keeps hackers out of your precious systems.
Encryption
Do you remember writing a letter using codes only you and the receiver understood? The concept of encrypting sensitive data follows the same principle. The insurer may require you to enforce encryption to prevent attackers from stealing or manipulating them.
Employee Training for Cybersecurity Insurance
Your business insurance preparation should include training employees on cybersecurity awareness. They help maintain the integrity of your systems and data. As such, they must undergo regular training to help them understand the severity of their role.
Backup and Disaster Recovery (BDR)
Comprehensive backups can help you retrieve lost or corrupted data. An effective BDR strategy demonstrates your readiness to restore your data after any cyber threat. Insurance firms may offer better premiums and plans for businesses with a strong BDR solution in place.
IT insurance application: the pitfalls
If a person asks for your help, what deal-breakers will discourage you from lending a hand? The most obvious answer is when they lie or provide incorrect information. Insurers will look for inaccuracies in your cybersecurity insurance requirements. In this instance, honesty is a legal obligation, not just a virtue.
In addition, an IT insurance company will probably reject a business with little or no security setup. Enlist a trustworthy team to manage your cybersecurity systems. Do you have professionals you can trust in this department?
Key Takeaways for Cybersecurity Insurance
How likely is your business to get the best policy based on the cybersecurity insurance requirements you meet? If you are unsure, now is a great time to see what you’re missing by checking out our on-demand webinar, ‘Common Pitfalls in Cybersecurity Insurance Application’.
What else can you do? Partner with a reputable co-managed service provider, of course! Let our experts ease the burden of IT insurance applications and more—talk to us to find out more!