How to Meet Cyber Insurance Requirements

Being vigilant about your cybersecurity posture is more important than ever. With the increased ease of cyber attacks, such as phishing schemes, ransomware, and data breaches, businesses need to protect their digital assets and have a plan in place should a breach occur. The rise in cyber attacks has led businesses to tap into their cyber insurance policies or seek out coverage for the first time. But the increase in potential payouts has led to stricter cyber insurance requirements for companies to meet. Lack of compliance could lead to being denied a policy, or being denied benefits when already insured.

What is Cyber Insurance?

Cyber insurance, also known as cyber liability insurance, is a specialty insurance that aims to cover the financial losses that organizations have as a result of ransomware attacks, data breaches, and other cyber incidents. Having cyber insurance can lessen the financial impact of a breach, which costs organizations an average of US$4.35 million per breach, according to IBM’s Cost of a Data Breach report. Due to the rise in payouts from security breaches, insurers have increased their cybersecurity requirements for companies before they can get coverage. Having cyber insurance can protect organizations with the following coverage:

• Financial loss due to business disruption
• Incident response, system repairs, forensic investigations and other services after an attack
• Legal expenses
• Cost of notifying customers of hacks where personally identifiable information (PII) has been compromised
• Ransom payments
• Public Relations to deal with reputational management post-breach

How Businesses Can Meet Cyber Insurance Requirements

There are many ways in which companies can improve their cybersecurity posture and meet more rigorous insurance requirements at the same time. Having a solid IT framework can help prevent attacks before they happen, and also make your organization a low risk insurance candidate.

For companies trying to match up to potential cyber insurance requirements, Thrive recommends following the CIS 18 Critical Security Controls which provides a roadmap for establishing basic cyber hygiene and then the steps to mature your approach. Of course, you will also want to understand the specific needs of your insurer and ensure you’re meeting those, but the CIS controls are a great starting point for insurance as well as complying with other regulations and standards as part of a cybersecurity compliance program.

To first understand your cybersecurity posture, conducting a cybersecurity risk assessment can help you understand potential gaps and weaknesses. A comprehensive risk assessment can also help prioritize areas that need immediate attention and align your security measures with the specific risks your business faces.

Other ways to improve your cybersecurity posture include:

• Patch Management and Vulnerability Remediation
• Advanced Threat Detection and Response
• Data Encryption and Secure Communication
• Employee Training and Awareness
• Compliance with Industry Standards
• Regular Data Backups

How Thrive Can Help

Working with a managed service provider, like Thrive, provides organizations with the specialized knowledge and tools needed to enhance their cybersecurity program and meet insurance requirements.

Thrive provides comprehensive, 24x7x365 services to help get your organization’s cybersecurity stack prepared for any attacks or breaches that may try to compromise your systems. Thrive offers Managed Detection and Response (MDR) services that aim to proactively detect and mitigate threats in real time. Additionally, Thrive provides patching and vulnerability management services to ensure that your systems are up-to-date and best protected.

Strengthening your cybersecurity program is a multifaceted process that requires a combination of technical controls, employee training, and compliance with industry standards. By implementing these best practices, businesses can not only reduce their risk of cyber incidents but also meet the increasingly stringent requirements set by cyber insurance providers. In today’s threat landscape, a proactive approach to cybersecurity is essential for safeguarding your business and ensuring that you are fully covered in the event of an incident.

Contact Thrive today to learn more about how an MSP can help you boost your security posture and get you cyber insurance ready.