As cyber-attacks continue to proliferate, the costs of cybersecurity insurance are on the rise. Insurance providers are making changes that significantly impact the way businesses need to protect themselves. Insurers are increasingly requiring companies to adopt specific cybersecurity measures in order to qualify for coverage. This has led to a rise in the cost of cyber insurance, with premiums reaching as high as $100,000 per year for some businesses.
For small businesses, who are especially vulnerable, the rising cost of cybersecurity insurance can be daunting. However, it's important to remember that the cost of not having insurance is much higher. In the event of a cyber-attack, businesses without insurance can face steep financial losses. The increased cost of insurance is worth it for the peace of mind it provides. By taking measures to protect your business, you can make yourself eligible for coverage and help reduce the cost of premiums.
Here are some of the major factors and challenges companies face in both applying for cybersecurity insurance and in meeting the increased requirements of the insurance companies.
1. The increasing cost of cybersecurity response (or ransomware payment) insurance.
Cybersecurity response insurance is one of the most commonly purchased forms of cyber insurance. It covers the costs associated with responding to a cyber-attack, such as hiring a forensic team, notifying customers, and repairing damage to systems. In recent years, premiums for this type of coverage have increased significantly, often doubling or even tripling in cost.
2. The increasing number of data breaches.
Insurance providers are also raising premiums in response to the increasing number of data breaches. As more businesses are targeted by hackers, the risk of a data breach increases, and insurers must charge more to cover their potential losses.
3. The growing sophistication of cyber attacks.
The sophistication of cyber attacks is also increasing, making it more difficult for businesses to defend themselves against threats. This has led to an increase in the number of claims filed under cybersecurity insurance policies and has driven up premiums accordingly.
4. The expanding range of risks covered by cybersecurity insurance policies.
Cybersecurity insurance policies have also been expanding to cover a wider range of risks. In addition to covering costs associated with data breaches and cyber attacks, many policies now also provide coverage for ransomware payments, intellectual property theft, and business interruption caused by a cyber incident. This has led to higher premiums as insurers seek to spread their risk across a larger number of policies.
5. The difficulty in meeting insurer requirements for coverage.
Many businesses find it difficult to meet the requirements set by insurers for coverage under a cybersecurity policy. This can include having robust data security measures in place and demonstrating an understanding of potential threats and how to mitigate them. Businesses that cannot meet these requirements may be forced to go without insurance or pay higher premiums for less comprehensive coverage.
In addition, insurers are becoming more demanding in their requirements for coverage. They are no longer willing to simply provide coverage for damages that have been caused by a cyber-attack. They are now also requiring businesses to take steps to prevent such attacks from happening in the first place. This includes adopting specific cybersecurity measures such as installing firewalls and antivirus software, and training employees on how to protect themselves from cyber threats.
Businesses that want to obtain cyber insurance face several challenges in meeting these requirements. One is the cost of implementing these measures, which can be significant. In addition, many businesses lack the expertise needed to properly secure their networks from cyber threats. And even businesses that do have the necessary expertise may find it difficult to keep up with the constantly changing security landscape.
To overcome these challenges, businesses should take a holistic approach to cybersecurity. This includes not only implementing specific security measures, but also developing a corporate culture that is mindful of cybersecurity risks and taking steps to mitigate them. Businesses should also partner with qualified cybersecurity professionals who can help them assess their risk profile and design a security strategy that meets their needs.
1. Review your business's risk profile.
Before applying for cybersecurity insurance, businesses should assess their risk profile to determine how likely they are to be targeted by hackers. This includes evaluating their data security measures and understanding the types of threats they are most vulnerable to.
2. Implement robust data security measures.
Small businesses can protect themselves from cyber-attacks by implementing robust data security measures. This includes installing firewalls and antivirus software, encrypting data, and training employees on how to protect themselves from cyber threats.
3. Develop a corporate culture that is mindful of cybersecurity risks.
It's not enough to simply implement security measures; businesses must also develop a corporate culture that is mindful of the risks associated with cybersecurity and takes steps to mitigate them. This includes educating employees about common cyber threats and how to avoid them, establishing policies governing the use of technology, and regularly testing the security of their networks.
4. Partner with qualified cybersecurity professionals.
Businesses that lack the expertise needed to secure their networks from cyber threats should partner with qualified cybersecurity professionals. These experts can help businesses assess their risk profile and design a security strategy that meets their needs.
5. Stay up to date with the latest security threats.
The environment of cybersecurity is constantly changing, so businesses need to stay up to date with the latest threats and how to protect themselves against them. This includes subscribing to newsletters and blogs, attending industry events, and working with qualified cybersecurity professionals.
6. Regularly test the security of your networks.
Businesses should regularly test the security of their networks to ensure that they are protected against current threats. This can be done through penetration testing or vulnerability scanning tools.
7. Keep backups of your data in case of a breach.
In the event of a data breach, it's important to have backups of your data so you can continue operations without losing any information. Businesses should make sure that their backup plans are robust and include offsite storage in case of a ransomware attack."
By following these steps, businesses can not only meet the requirements of their cybersecurity insurance policy, but also improve their overall security posture and protect themselves from cyber-attacks.
The very first step in getting started with cybersecurity insurance is to review your business's risk profile. This includes assessing your data security measures and understanding the types of threats you are most vulnerable to. Once you have a better understanding of your risk profile, you can begin implementing robust data security measures to protect yourself from cyber-attacks. By following these steps, businesses can not only meet the requirements of their cybersecurity insurance policy, but also improve their overall security posture and protect themselves from cyber-attacks.
If you are a business looking for help securing your network from cyber threats, CTS Services, Inc. is the perfect partner. With many years of experience in the cybersecurity industry, we can help businesses of all sizes assess their risk profile and design a security strategy that meets their needs. Contact us today at 508-528-7720 or visit www.ctsservices.com to learn more!
Managed Services provides peace of mind and positions a company to focus on what it does best; attention to the business at hand and serving clients. Protecting your company’s data (including your clients’ and your vendors’ data) is a full-time job in today’s world and it requires a cooperative effort of your team and of ours. Our job is to support your IT infrastructure so that all your company’s applications run smoothly, with minimal disruption, and with rapid recovery to any disaster that may strike.
Shared IT priorities are important in managed IT services because they help to minimize risk and maximize performance. By sharing IT priorities, companies can better identify potential risks and take steps to mitigate them. Additionally, shared IT priorities help to ensure that all members of the IT team are on the same page and working towards the same goals. This can help to avoid confusion and duplication of effort, and ultimately lead to more efficient and effective IT management.
Savvy IT professionals and business leaders strive to manage risks and leverage opportunities using technology more so that ever, and there are many strategies and steps for limiting vulnerabilities from both internal technology issues and from cybersecurity attacks. Much can be done to limit exposure, including:
Smart Cybersecurity Practices and Awareness Training
As the world becomes increasingly reliant on technology, cybersecurity becomes more and more important. Online criminals are constantly finding new ways to exploit vulnerabilities, and it can be difficult for even the most tech-savvy individuals to stay ahead of the curve. That's why businesses need to provide on-demand education and awareness training for their employees. By making sure that everyone understands the basics of cybersecurity, businesses can make themselves much less inviting targets for attacks. Furthermore, employees who are aware of the latest threats are more likely to spot suspicious activity and report it to the IT department. On-demand education and awareness training is essential for any business that wants to protect itself against cybersecurity threats.
Asset Protection: data backup and recovery
Asset protection is a top priority for any business, and data backup and recovery are essential components of a comprehensive asset protection strategy. By protecting corporate information, businesses can mitigate the risk of data loss and ensure that critical information is always available. Backup and restore policies should be designed to protect against all types of data loss, including hardware failure, software corruption, and user error. To maximize data protection, businesses should regularly test their backup and recovery procedures to ensure that they are effective. By taking these steps, businesses can safeguard their assets and ensure that they are always able to access the information they need.
End User Support, Monitoring and Access Control
In order to ensure remote and mobile users have secure access to corporate networks and IT resources, organizations must implement a comprehensive end user support strategy. This strategy should include a robust system of monitoring and access control. By tracking user activity and setting strict permissions, organizations can ensure that only authorized users are accessing sensitive data. In addition, by monitoring IT performance, organizations can identify and resolve issues before they cause major disruptions. By implementing these measures, organizations can provide remote and mobile users with secure access to corporate networks and IT resources.
Best In Class, Latest Generation WiFi Routers and Firewalls
The new generation of WiFi routers and firewalls are the best in class, providing wireless access and security that is unrivaled. With new technology, these devices can provide a higher level of protection against hackers and malware. In addition, they are able to properly configure firewall settings to ensure that your network is secure. As a result, you can rest assured that your data and devices are safe when you use the latest generation of Wi-Fi routers and firewalls.
Software Patch Monitoring and Management
In today's business environment, software patch monitoring and management is critical to ensuring the security of company data. With the ever-present risks of malware and ransomware, it is essential to keep software up-to-date with the latest security patches. Automated updates can help to take the burden off of IT staff and ensure that all systems are updated in a timely manner. However, it is important to monitor update activity to ensure that vital systems are not disrupted. By keeping on top of software updates, companies can minimize the risks associated with security vulnerabilities.
Endpoint monitoring and end user support
In today's digital world, endpoint monitoring and end user support are essential for any organization. Endpoint devices, such as laptops, smartphones, and tablets, are often the first point of contact for users when they access corporate networks. As a result, it is critical that these devices are properly monitored and managed. Endpoint detection and response (EDR) is a key component of endpoint security. It involves monitoring endpoint devices for signs of malicious activity and responding quickly to any incidents that are detected. An endpoint management platform can provide comprehensive visibility into all endpoint activity and helps to streamline the EDR process. By deploying an endpoint management platform, organizations can improve their overall security posture and better protect their end users.
Endpoint monitoring is the practice of monitoring the activity on a device that is connected to a network. This can be done in order to troubleshoot issues, assess performance, or keep track of compliance with policies. End user support is the provision of assistance to individuals who use an organization's products or services. This can include providing training, answering questions, or resolving problems. In many cases, endpoint monitoring and end user support are provided by the same team or individual. However, it is becoming increasingly common for organizations to outsource endpoint monitoring to specialist firms. This is often seen as a more cost-effective way to ensure that devices are properly monitored and maintained.
Server performance monitoring and remote support
Server performance monitoring is a critical task for any business that relies on a network of computers to function. By tracking server performance, businesses can identify and solve problems before they cause major disruptions. Additionally, remote support can be used to resolve issues quickly and efficiently. Remote support allows businesses to connect to servers remotely in order to troubleshoot and repair problems. When combined, these two tools can help businesses keep their servers running smoothly and avoid costly downtime.
IT Compliance requirements for your industry
Depending on the industry in which your company operates, there may be specific IT compliance requirements that must be met in order to do business. For example, companies in the healthcare industry are subject to HIPAA compliance regulations, which govern the way patient data is stored and transmitted. Financial companies are subject to Sarbanes-Oxley compliance regulations, which govern financial reporting. And companies that handle credit card transactions must comply with PCI-DSS standards. While meeting these compliance requirements can be a challenge, it's essential to ensuring the security of your data and protecting your company from legal liabilities. By working with a qualified IT consultant, you can ensure that your company is in compliance with all applicable regulations.
Latest hardware in place, including servers, storage, and end user devices
In today's business environment, having the latest hardware is essential for success. With servers, storage, and end user devices that are constantly being updated, it's important to have a plan in place to keep your business up-to-date. By staying on top of the latest hardware trends, you can ensure that your business is using the best possible equipment. This not only helps to improve efficiency and productivity, but it also helps to reduce costs. In addition, by keeping your hardware up-to-date, you can help to ensure that your business is always able to take advantage of new technologies as they become available.
Remote and mobile user device security, access control and monitoring
The remote and mobile user device security landscape has shifted dramatically in recent years, as remote and hybrid work environments have become the norm. This new reality has created significant security challenges for organizations of all sizes, as they strive to protect their assets and data from a variety of threats.
As more and more businesses move to remote and hybrid work models, the need for effective remote and mobile user device security has never been greater. Security challenges posed by remote and mobile workers include protecting assets from unauthorized access and ensuring that data is properly encrypted during transmission. To meet these challenges, organizations must implement effective remote and mobile user device security policies and procedures. These policies should include provisions for authentication, authorization, data encryption, device management, and activity monitoring. By taking these steps, organizations can protect their assets and ensure that their data is properly secured.
Call to Action - Partnering for IT Support and Security
Together, let’s focus on doing all we can to protect your network, your company assets, and ensure all appropriate IT best practices are in place to keep your business running smoothly and securely.
Trust and confidence are the cornerstones of any successful business relationship. IT support and security are critical for any business. Trust and confidence are essential in any partnership, and that's especially true when it comes to IT. We're here to help you ensure business continuity and plan for future growth. We'll work with you to identify your specific needs and develop a customized solution that meets your unique requirements. Contact us today at 508-528-7720 to learn more about how we can help you protect your business.
Our blog posts are written by several members of our team. Please contact us if a particular post or topic is of further interest. We're here to help keep your business up and running.