Cybersecurity Insurance is a Waste of Money… If You’re Not Doing These 5 Things Today!

Cybersecurity insurance has become an increasingly popular solution for businesses to protect themselves against today’s increasingly volatile cybersecurity threats. While cybersecurity insurance can provide some degree of a safety net for businesses, there are a number of considerable considerations to keep in mind in order for your cybersecurity policy to work and pay out a claim in the unfortunate case of a breach. In this article, we’ll clarify the required- and most overlooked- ‘must-haves’ to help make the most of your insurance policy.

The 4 Must-Have’s for Cybersecurity Insurance

Must Have # 1, Basic Cybersecurity Tools: Businesses must have basic cybersecurity measures in place before they can even consider cybersecurity insurance. Cybersecurity insurance is designed to help cover costs associated with a cyber-attack, but it does not prevent an attack from happening in the first place. Therefore, businesses must have a solid cybersecurity strategy in place that includes the use of solutions such as managed firewalls, anti-virus software, and intrusion detection systems. The cybersecurity solutions required for cybersecurity insurance can vary depending on the policy and the provider, but in general, insurance providers will require certain cybersecurity solutions to be in place before they will issue coverage. Some of the common cybersecurity solutions that insurance providers may require include:

• Firewall: A firewall is a network security device that monitors and filters incoming and outgoing network traffic based on an organization’s previously established security policies. A firewall can help prevent unauthorized access to an organization’s network and sensitive data.

• Antivirus software: Antivirus software is designed to detect and remove malicious software (malware) from an organization’s systems. It can help protect against viruses, Trojans, worms, and other types of malware that can compromise an organization’s systems.

• Encryption: Encryption is the process of converting sensitive information into a code to prevent unauthorized access. Encryption can be used to protect data that is stored on an organization’s systems, as well as data that is transmitted over the internet.

• SIEM + SOC & Vulnerability Management Scanning: A SIEM system that includes a 24x7x365 SOC, is essential for real-time threat detection and response to analyze security-related data to combat potential vulnerabilities and threats. It can help insurers evaluate client risk levels and determine appropriate coverage. Vulnerability management scanning is also crucial as they can assess the security posture of an organization and in turn, lower premiums and improve coverage terms for cybersecurity insurance.

• Multi-factor authentication (MFA): MFA is a security mechanism that requires users to provide two or more forms of authentication to access an organization’s systems. This can include something the user knows (such as a password), something the user has (such as a security token), or something the user is (such as biometric data).

• Patch management: Patch management involves regularly updating software and systems to address known vulnerabilities and security issues. Insurance providers may require organizations to have a patch management process in place to ensure that systems are up-to-date and secure.

• Employee training: Employee training is a critical component of any cybersecurity program. Insurance providers may require organizations to provide regular cybersecurity training to employees to help them recognize and respond to potential threats.

Organizations should carefully review the policy requirements and work with their insurance provider to ensure that they have the necessary cybersecurity solutions in place. Additionally, it is important to prioritize cybersecurity and implement best practices to mitigate potential vulnerabilities and reduce the risk of a cyber incident.

Must Have #2, Routine Security Assessments: Secondly, businesses must conduct regular security assessments that at a minimum include vulnerability scans to ensure that adequate cybersecurity measures are up to date and effectively functioning. This is essential for ensuring that any weaknesses in the security infrastructure are identified and addressed before they can be exploited by cyber criminals.

Must Have #3, Incident Response Plan (IRP): Thirdly, businesses must have a response plan in place for when a cyber-attack does occur. This includes having a dedicated incident response team that is trained and ready to respond quickly and effectively to a cyber-attack. The response plan should also include communication protocols, such as how to communicate with customers and other stakeholders in the event of a breach.

Must Have #4, Employee Cybersecurity Awareness Training: Finally, businesses must ensure that all employees are aware of the risks of cyber-attacks and are trained to identify and report potential threats. Employee education is an essential component of any cybersecurity strategy, as human error is often a weak link in the security chain.

Concluding Remarks & Additional Resources

In conclusion, cybersecurity insurance can provide businesses with an additional layer of protection against potential cyber-attacks, but it is not a substitute for implementing basic cybersecurity measures. To ensure that cybersecurity insurance works effectively, businesses must have a solid cybersecurity strategy in place that includes the foundational security solutions referenced in Must Have #1, routinely scheduled security assessments, a dedicated incident response team or partner, and a regularly updated and regimented employee education program. By taking these steps, businesses can help protect themselves against the growing threat of cyber-attacks and minimize the potential damage caused by a breach. If you’re interested to learn more about how TSI partners with organizations to help improve their cybersecurity postures and make the most of their cybersecurity policies, contact us today. For information about TSI’s full suite of cybersecurity services and solutions, please visit our page Here.