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Jun 07 2022

3 Things You Might Not Know About Cyber Insurance

These days, cyber-crimes are rampant against Canadian businesses, yet few people understand how to protect themselves. 

Unfortunately, a data breach, hack, or deliberate virus can strike all types of organizations. The common tactics criminals use to conduct data breaches are Denial of Service, Phishing, Malware, and Ransomware. Sadly, when a data breach is successful, it can damage much more than your organization’s network – your reputation can take a serious hit, and the personal data of your clients, customers, and employees can be at risk. Having cyber insurance can significantly mitigate the risks associated with cyber-attacks. Cyber insurance is intended to cover the liability your business may bear for a data breach that involves sensitive customer information such as drivers’ license numbers, health care records, account numbers, and credit card numbers. 

If your organization already has a policy in place or is not protected yet, below are 3 things you might not know about Cyber Insurance that you should be aware of:

1. Businesses must ensure the requirements of their cyber insurance policy are fulfilled so coverage will not be nullified. 

Once you have put your cyber insurance into place, don’t get complacent! You have certain requirements that will ensure your policy actually covers you in the event of a security breach or incident. Your provider may have carried out a cyber insurance risk assessment as part of the underwriting process. This process can range from a questionnaire to a detailed analysis carried out over multiple weeks by a cyber security firm. To keep risks at an acceptable level, policyholders must meet basic security standards, such as:  

  • Your PCs must all be kept up-to-date and equipped with antivirus software.
  • You must protect your company network with a firewall. 
  • You must regularly back up your business data via external media or secure cloud service.
  • A secure provisioning process must be used for user access rights and permissions.

These steps and more may not just be necessary to keep out hackers, they could determine your cyber insurance rates as well as what your cyber insurance will pay in the event of a breach.

2. Cyber insurance does not mean you should stop taking cybersecurity seriously.

It is important to reiterate that just because you purchase cyber insurance doesn’t mean you should ignore any glaring cyber-security weaknesses. When you fail to have appropriate cyber-security policies and protocols in place, you are putting your company at significant risk, with or without cyber insurance. While cyber insurance is incredibly important, there is no better protection against cyber-attack than a comprehensive cyber-security solution.

3. Multi-Factor Authentication (MFA) is considered to be the gold standard in cyberattack prevention, so many insurance providers will not even cover you if your company has not implemented MFA.

Multi-Factor Authentication is a cybersecurity measure that requires users to confirm multiple factors to verify their identity before they are allowed to access a system or network. Generally speaking, users must first provide a password, then verify access by inputting a code sent to another device or confirming with a biometric like a fingerprint. MFA is not complicated for users, and only requires the purchase of new hardware in some cases. MFA can prevent system intruders from breaching networks, stealing sensitive information, or erasing valuable data. Since cyberattacks often begin with a compromised password or log in, MFA protection is crucial in adding a layer of security that has been shown to be almost 99.9 percent effective in blocking attacks that stem from compromised accounts. Employing MFA technology significantly minimizes the threat of a data breach, particularly when MFA technology is combined with employee training and increased cyber security awareness.

Download our ebook “10 Things You Need to Know About Cyber Insurance” to learn more about protecting your business with cyber insurance. 

Ready to strengthen & simplify your cyber security posture?

Contact us by booking your free, no-obligation discovery call today to discover the best IT solutions to meet the needs of your organization and your employees.

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