Cyber insurance is among the fastest-growing specialty insurance products, and with good reason. The costs of responding to cyberattacks and restoring affected systems and data are soaring, with ransomware leading the way. For most small- and medium-sized businesses (SMBs), these costs are well above their ability to pay. Some SMBs that fall victim to cyberattacks end up closing their doors forever.
With the ever-increasing risks that businesses face and the exponential increase in costs, insurers are picky about what customers they sell cyber insurance to and how much their premiums are. Most cyber insurance providers want documented evidence of a solid security program before they will sell you their cyber insurance products.
Even if they are approved for insurance coverage, customers often hesitate before taking on high premiums. It can be tough to pay high prices for insurance and pay even higher costs to recover from a cyberattack.
In this article, we discuss some actions your business can take to reduce your cyber insurance premiums.
Adopt Cybersecurity Best Practices
It should come as no surprise that a business that adopts cybersecurity best practices will pay less in cyber insurance premiums. Most of these practices are not difficult or expensive to implement. Some examples include:
- Require strong user passwords or passphrases
- Implement two-factor authentication for remote access
- Keep anti-malware software up to date
- Update applications and operating systems with the latest security patches
Implement and Enforce Security Policies
Your system users are the last line of defense in your cybersecurity program–and often are the weakest link. Every user must be trained on and agree to abide by your security policies as a condition of continued employment. If you don’t have any security policies, now is the time to put some together. At a minimum, they should cover:
- Acceptable use of company IT resources
- Role-based access to systems, data, and applications
- Actions to take in the event of a data breach or other cyberattack
Strengthen Your Physical Security
Although it gets less attention than other aspects, physical security is a critical component of a firm’s overall cybersecurity program. Cybercriminals with physical access to your IT systems can copy data onto USB storage, install malware, obtain important infrastructure information, and cause other mischiefs. Physical security enhancements can include:
- Implement badge access to the premises and sensitive areas (such as the data center) within the building
- Install security cameras
- Require visitors to identify themselves and check-in and out
- Require visitors to be escorted by an employee at all times while on-site
Get Professional Help
One of the best overall security strategies is to engage the services of cybersecurity experts. They can assess your IT environment for vulnerabilities and recommend specific actions to take. If you don’t have in-house cybersecurity expertise, an outside security consultant may be your only practical option. Cyber insurance carriers like to see that you take security seriously enough to pay someone to do it right.
At 360 Visibility, we specialize in securing your IT assets by leveraging the power of cloud technologies. Contact us today to learn how we can harden your cyber defenses — and get a nice reduction in your cyber insurance premiums.