3 Proven Ways to Lower Cybersecurity Insurance for Business: Expert Advice
There is no private business that doesn’t need cybersecurity. Every business, regardless of size or industry, is at risk of cyber threats, such as hacking, data breaches, and cyber-attacks.
If you’re reading this, congratulations, you are a cyber-conscious business leader who knows cybersecurity insurance is important for business. Good on you!
Why Cybersecurity Insurance is Important for Business
Cyber insurance helps reduce out-of-pocket costs of a data breach including ransomware demands in case your backups fail.
Ideally, you should have effective backup and recovery systems in place that are tested regularly to make sure you can retrieve your data when you need to.
Cyber insurance can also help cover legal fees, regulatory fines, and the cost of providing credit monitoring services to affected customers whose personal information was stolen.
3 Ways to Lower Cybersecurity Insurance for Businesses in 2023
- Assess your cybersecurity risk.
- Improve your cybersecurity Processes.
- Ask your IT company for help with your insurance application.
It’s good to know you don’t have to do all of this alone. If you’re a growing business, chances are you have an IT partner who helps your business run smoother, safer, and more profitably.
Consulting with these same IT experts can help your business get lower premiums on cybersecurity liability insurance. Here’s how:
Assess Your Cybersecurity Risks
An experienced IT and cybersecurity services provider can conduct a comprehensive cybersecurity risk assessment of your business’ network to identify and address security vulnerabilities.
Importance Of Assessing Risks BEFORE Applying for Insurance.
It is important to determine if your business could truly survive a cybercrime attack. Getting a security audit will help you identify and address security vulnerabilities in your IT network.
Businesses can reduce their overall cybersecurity risk by implementing the recommendation made by their IT company, which can lead to lower insurance premiums.
Most IT or cybersecurity companies will provide this service for free to clients along with a full report of findings that details how they will help address each risk.
Essential Steps To Assess Cybersecurity Risks.
- Identify your critical assets, such as sensitive data or systems, and evaluate their potential impact if they were compromised.
- Identify potential threats, such as phishing or ransomware attacks, and assess their likelihood and potential impact.
- Evaluate your current security measures, such as firewalls or antivirus software, and identify any gaps or weaknesses.
- Assess your employee security awareness and training programs to ensure that they are effective in mitigating human error risks.
- Review your incident response plan to ensure that it is up-to-date and effective in minimizing the impact of a cyber-attack.
By following these essential steps, you can gain a comprehensive understanding of your cybersecurity risks and develop an effective plan to mitigate those risks.
Benefits of Assessing Risk for Lowering Insurance Premiums.
When you assess your network security, you can identify and address potential risks. The primary benefit here is lower insurance premiums.
You’ll be able to demonstrate to your insurance carrier that your business is less likely to experience a cyber-attack or data breach with improved cybersecurity posture.
Improve Your Cybersecurity Processes
The Role of Managed IT Services Providers In Enhancing Cybersecurity.
Managed IT Services Providers help businesses ensure they are meeting the latest in cybersecurity best practices to protect against threats like ransomware.
Your IT services provider can protect your business with zero-trust cybersecurity protections like ringfencing, access controls, secure remote access, identity management and more.
According to a study by Ponemon Institute, companies that have a Managed IT Services Provider (MSP) in place experience 58% fewer security breaches.
Additionally, a study by the Better Business Bureau found that small businesses with MSPs had 91% fewer security incidents and spent 19% less on security costs compared to those without MSPs.
These statistics demonstrate the effectiveness of MSPs in reducing the risk of cyber-attacks and lowering cybersecurity insurance rates for businesses.
Common Cybersecurity Protections Insurance Companies Want to See In Place.
- Multi-factor Authentication
- Data encryption
- Regular Security Assessments
- Cybersecurity Awareness Training for Employees
- Endpoint Protection
- Access Controls
- Effective Backups
- Documented Incident Response Plan
- Firewalls
- Antivirus Software
- Intrusion Detection
Keep in mind that your insurance company requirements may vary depending on your specific industry and business size.
Even if your cyber insurance company doesn’t require every security protection we’ve listed here, it’s still worth asking a qualified cybersecurity consultant about it.
Benefits of Implementing Better Cybersecurity Solutions to Lower Insurance Premiums.
By enhancing your security protocols, your business makes a much harder target for cybercriminals. This also makes you much less risky to your cybersecurity insurance company.
Therefore, implementing better cybersecurity solutions can greatly reduce your cyber insurance rates. Here is a list of the most common protections cyber insurance companies want to see in place.
And don’t just assume your IT company “Has Things Covered.” It is entirely possible that your current IT services provider is “too busy” to truly be proactive with your network security. Or maybe they don’t want to admit the security package they sold you has become OBSOLETE and inadequate compared to the far superior solutions available today.
Ask Your IT Company For Help with Your Cyber Insurance Application
Importance of Providing Accurate Information In the Insurance Application.
It is EXTREMELY important to provide accurate information on your insurance application as this could result in your claim being denied which can cost a fortune and be devastating for your business.
If you misrepresent the type of security software used, fail to disclose past security breaches, or provide inaccurate information about employee cybersecurity awareness training, your claim will likely be denied.
How IT Companies Can Help with the Application Process.
After assessing your risk and taking steps to resolve any security issues to improve your network protection, ask your IT company to help you fill out your insurance application.
Consult with your IT company when renewing your cyber liability insurance policy to ensure that the forms are filled out with the most accuracy.
Your IT company can help you gather the necessary information about your cybersecurity protections, provide documentation of your security measures, or review the application to ensure accuracy.
The Consequences of Misrepresentation of Information on Insurance Coverage.
Misrepresenting information about your cybersecurity protections in a cybersecurity liability insurance form can have serious consequences.
The last thing you want is to file a claim after experiencing a data breach and your insurance carrier finds out that the information your business provided is inaccurate or incomplete.
If it turns out you do not have the cybersecurity protections and protocols in place that you said you did on your application. Your claim may be denied, leaving you and your business vulnerable to the financial impact of a cyberattack.
In addition to a claim denial, misrepresentation can also result in the insurance company accusing you of negligence, which can have negative legal and reputational consequences. The insurance company could also terminate the policy or charge higher premiums for future coverage. Ouch.
Furthermore, knowingly providing false information on an insurance application is considered fraud, which is a criminal offense and can result in fines and even imprisonment.
It is important to be honest and accurate when filling out cybersecurity liability insurance forms to ensure that your business is adequately protected and that you can rely on your insurance coverage in the event of a cyber-attack.
Renewing Your Business Insurance?
For lower insurance premiums, we encourage every business to consult with an IT company to assess and address potential risks and help provide accurate information to insurers.
Cybersecurity protections are constantly evolving as cyber threats get more and more sophisticated. Renewing your insurance policy is an opportunity to ensure that your cybersecurity protections are up-to-date. The first step is to get a cybersecurity risk assessment to identify your cyber risk.
Juern Technology is the only TRUE cybersecurity company in Southern Texas. We are a trusted third-party that can help you assess your risk, protect your business, and ensure your insurance application has the most accurate and up-to-date information.
Book a free Discovery Call today! Call us at (210) 245-6900 or visit our website to get started https://www.juerntech.com/15-minute-discovery-call/
