10 Essential Cybersecurity Tips for Securing Cyber Insurance

Earlier this year, Forbes reported that organizations lose around $4.88 million in a data breach. Hits like these are hard to recover from, especially when you have limited resources and no insurance.

However, intense cyber insurance requirements can be a huge roadblock between businesses and the security that comes from knowing you’re covered. These 10 tips will improve your cybersecurity profile so you can qualify for cyber insurance and have peace of mind as you run your business.

Why Is It So Difficult to Get Cyber Insurance?

First, it's helpful to understand why cyber coverage is such a rare commodity and why cyber insurance requirements are so extensive.

• High Demand and Rising Losses: The demand for cyber insurance is constantly growing. Meanwhile, losses for cyber insurance companies are also on the rise, with big payouts from attacks like ransomware. The combination of these circumstances leads to increased prices and requires insurance companies to be more choosy about who they cover.
• Challenge of High Risk: Think of it this way: If you build a house on the beach right where the tide comes in and out, it will be difficult to get flood insurance because there is no doubt that your house will flood. Likewise, if you don't take necessary cybersecurity measures, it will be difficult to secure insurance because you're more likely to lose money and resources in a cyberattack.
• Strict Risk Evaluations: Insurance companies will assess your cybersecurity practices to determine whether or not your company is a viable candidate, and many of them have strict rules about what systems you need to have in place. These mandates can make it difficult for smaller organizations with limited budgets and resources to qualify for coverage.

Prepare for Cyber Insurance with These Essential Steps

You may be feeling a little overwhelmed at this point—but don't panic. Try integrating the following practices into your cybersecurity framework to help you meet cyber insurance requirements.

1. Understand Cyber Insurance Requirements

Make sure you're aware of what you need to qualify for your desired insurance policy. Specific requirements will vary depending on the insurance company, but some common necessities include network security, multi-factor authentication, disaster recovery plans, data encryption, endpoint protection, software patching, regulatory compliance, and employee education.

2. Conduct Risk Assessments

Checking your systems regularly for vulnerabilities and security gaps is necessary to stay safe from emerging threats. These evaluations will help you know what improvements to make to keep your systems secure.

3. Implement Strong Access Controls

Not all information needs to be accessible to every employee. Limit access to different systems, tools, and data based on team members' roles—give them just what they need to do their job. This principle of least privilege will limit unauthorized data viewing and manipulation and reduce the risk of breaches.

4. Use Multi-factor Authentication

Recently, most cyber insurance requirements have started to include multi-factor authentication (MFA), which requires employees to verify their identity through something like a fingerprint or code sent to their phone, in addition to their password. This confirms that users are who they say they are and keeps private information private.

5. Regularly Update and Patch Systems

Regular updates and timely software patches enhance functionality and put the latest security measures in place, safeguarding your organization against emerging threats and minimizing vulnerabilities.

6. Encrypt Sensitive Data

Encryption ensures that even if data is intercepted, it remains unreadable to potential attackers. With strong encryption protocols, you can safeguard data, foster customer trust, and comply with regulations, all of which are vital for meeting cyber insurance requirements.

7. Develop an Incident Response Plan

A comprehensive incident response plan is essential for minimizing damage in the event of a cyber incident. Test and update your plan often so you can respond effectively to evolving threats and meet cyber insurance requirements.

8. Secure Network Perimeters 

Firewalls and intrusion detection and prevention systems are essential for safeguarding your organization from external threats. 24/7 monitoring and frequent updates will help you swiftly identify and eradicate any issues before they get too big and unmanageable.

9. Run Data Backups Often

Data backup systems prevent critical information from being lost in a breach. Strategies such as automated backups, off-site and cloud storage, and periodic testing keep your data secure and retrievable after an attack.

10. Train Employees

Cybersecurity awareness is essential for fostering a culture of security within an organization, as employees are often the first line of defense against cyber threats. Recurring training exercises and information sessions can help refresh your team's memory, keep them on their toes, and educate them about new threats and policies.

Straighten Your Security Posture with Velocity IT

At Velocity IT, we understand the importance of protecting your business in every way possible. We also know how complicated cyber insurance requirements can be, and we want to help.

Our team is committed to security and proactive solutions, with our top priority being your success. We'll work with you to create a robust security plan so you can qualify for the coverage and safety you need. To give your security and insurance eligibility a boost, give us a call.