Cyber damage is one of the largest risks that modern organizations face, and in many instances, it’s no longer a question of if your organization will suffer a data breach, but when.
New reports show that cyberattacks — even on small-to-midsize businesses (SMBs)! — are becoming more prevalent each year. In fact, the risk for small businesses has never been higher, with 43% of cyberattacks being made against SMBs (up from just 18% just a few years ago).
The short- and long-term costs of a data breach can be devastating, but proactively minimizing your risk for a breach or other attack isn’t always simple. Establishing a formal plan to manage potential data breaches, as well as a response and recovery plan in the event of a cyber attack, is a must if you hope to contain that damage. Many businesses also turn to cyber liability insurance policies to further protect themselves from privacy, data and network exposures.
Cyber Liability Insurance in 2022
The cyber liability insurance model is evolving and it’s imperative that your business’ strategic cybersecurity stance evolve with it.
While businesses were previously able to secure cyber liability insurance without providing much information about their current security practices, increasingly severe cyberattacks and skyrocketing payouts associated with those attacks have forced the industry to raise its premiums and more carefully scrutinize policyholders.
Passwords can be easily compromised, and therefore aren’t enough to prevent breaches and protect your business’s sensitive data. To renew coverage or receive a payout, businesses must be able to prove that they’re taking meaningful actions to reduce the threat of a successful cyber attack. Specific security best practices and requirements you may need to implement include:
- Multi-factor authentication (MFA), which has been shown to be incredibly effective at combating cyberattacks.
- A backup solution which includes both local and cloud backups.
- Data Encryption.
- Vulnerability management.
- Employee security awareness training.
- EDR (Endpoint Detection and Response) Software on all servers and workstations.
Businesses that are not in compliance with these requirements could receive little to no coverage when they need it most.
Don’t wait until it’s too late! Take steps today to prevent costly data breaches and confirm that you’re fully in compliance with your cyber insurance policy. Our team of IT experts is here to help make sure you are effectively implementing the cybersecurity processes needed to secure and maintain adequate cyber insurance.