Businesses invest in many forms of insurance to protect their assets. From commercial property insurance covering damage to your building or operations and equipment to health insurance covering your human resources, insurance is critical to business operation
Recently, another major form of business insurance, cyber insurance, has come to be seen as an essential for businesses of all sizes, from small mom-and-pops to enterprise corporations.
Why Cyber Insurance?
Digital transformation and the shift online for industries’ communications, data storage, and essential operations, has its benefits and drawbacks.
The biggest drawback is the vulnerability to cyberattacks that come with keeping valuable information, such as customers’ credit card numbers, in a digital sphere that anyone with the technological know-how, or just sufficient social engineering tactics, can gain access to.
Even with strong cybersecurity solutions, there is no 100% guarantee that your business will not get hit with a cyberattack. However, through mitigation of risks with cybersecurity tools or transferring of risk with cyber liability insurance, your business increases its security and success potential in the current cyber landscape.
A data breach can do more than just financial damage to your company. Your reputation, customer or client relationships, and employee trust are all jeopardized from a cyberattack. This is why it is important to recover as much financial losses as possible, so that your business can weather the post-cyber attack storm.
To help mitigate financial damage, an investment in cyber insurance can be key to making a strong recovery.
Cyber Insurance Is Becoming Harder to Secure
Cyber insurance can offer protection from a potentially devastating financial loss, but insurance companies do not dole this special protection out to just about any business.
In fact, businesses really must compete for cyber insurance coverage, and the requirements to secure it go far beyond how much you are willing to pay for premiums.
Strong contenders for cyber insurance all have one thing in common: Strong cybersecurity.
Effective Cyber Insurance Compliance
A cyber insurance plan typically comes with many cybersecurity-related requirements. Cyber insurance compliance consists of making sure that your business is doing everything it can to protect itself against financial losses due to cyberattacks.
If your business is easy pickings for a hacker, then an insurance company is going to be unwilling to pay when the inevitable cyberattack leads to massive losses.
The best way to ensure compliance with a cyber insurance plan is to make sure that you have protection for the most commonly-attacked areas in network security.
Data loss is a major source of financial loss in cyber attacks, so having a data backup plan is essential for complying with a cyber insurance plan. Making no investment in data retrieval solutions can be a red flag for insurance companies.
Employee training and monitoring is another big issue, as unauthorized access to important accounts and data (such as password-protected folders on a shared drive) is one of the major sources for data breaches.
Your cybersecurity plan should prevent such events, and your employees should be wise to the fact that many cybercriminals will try to directly manipulate them via email, phone, or other method in order to gain access to important information.
Lastly, antivirus and malware detection software are absolute essentials for cyber insurance compliance.
Matrix Integration Is Here to Help
Matrix Integration is your guide on the journey to the best practices for preventing cyberattacks and other digital threats. We work hard to ensure that you qualify for high-quality cyber insurance plans. Additionally, our outstanding cybersecurity services help reduce your cyber insurance expenses.
Interested in our services? Get in contact with us today!