Cyber insurance has become an increasingly valuable asset for businesses of all sizes and industries. With the rise in cyber threats, cyber insurance provides organizations with financial coverage against losses associated with a data breach or other security incidents.
In this blog, we’ll review the current cybersecurity insurance requirements and discuss how businesses can improve their cybersecurity to lower their premiums.
Why Is Cyber Insurance Important?
Cyber insurance is important for businesses because it can help to reduce the costly expenses associated with a data breach or cyber attack. Considering that a data breach could cost you $5 million, the right protection can help companies recoup those financial losses and keep their operations from collapsing.
In addition, having cybersecurity insurance in place may also help you regain the trust of customers and partners who were affected by the incident. Insurance coverage can also include assistance from legal and IT professionals.
Who Needs Cyber Insurance?
Any business that collects, stores, or processes customer data should consider cybersecurity insurance. This includes organizations in the banking and financial services industry, healthcare providers, educational institutions, and retailers.
Without cyber insurance, your business runs the risk of facing expensive litigation fees and penalties in the event of a data breach—insurance helps your business survive the unpredictable.
The New Cybersecurity Insurance Requirements
Some of the most significant changes that have come recently include the requirement of multi-factor authentication as well as the protection of all privileged accounts.
Underwriters are now requiring companies to use multi-factor authentication (MFA) on all cloud-based emails and remote network access points, as well as regularly update software and patch vulnerabilities. In addition, any privileged accounts must be protected with a separate authentication layer and monitored for suspicious activity.
These new standards provide an extra layer of protection to policyholders, but they can also lead to higher premiums or even rejection of coverage if businesses don’t meet the requirements.
Other Requirements for Cyber Insurance
Including the updated standards, here’s a list of the requirements that businesses need to have in place before they can obtain cybersecurity insurance coverage:
1. Implementing Multi-Factor (MFA)
2. Monitoring Privileged Accounts
3. Regularly Update Software and Patch Vulnerabilities
4. IT System Audits
5. Comprehensive Security Policies
6. Employee Cybersecurity Training
Improve Your Cybersecurity and Lower Premiums With TrinWare
With the rising number of cyberattacks, businesses need to have the necessary protections in place. TrinWare can help make sure that you meet the requirements needed for cybersecurity insurance coverage and give you peace of mind knowing that your business will be prepared in the event of a cyber breach.
We even offer a free phishing campaign prevention tool with our MSP packages that help to identify vulnerabilities in your system and educate your employees on cybersecurity policies.
Set up a consultation today to learn more about our services and how we can help protect your business!