Identifying the best cyber insurance on the market necessitates ensuring that a provider’s digital and risk mitigation capabilities are capable of actively preventing threats and providing assistance in the event of a cyber-attack.
Businesses rely on data and vital software access, but with ransomware attacks at an all-time high, these resources are becoming increasingly vulnerable. Cyber insurance is one of the most crucial investments a company can make as threat actors continue to target core components of a business (e.g., web hosts and content management systems).
Traditional insurance, on the other hand, is clearly incapable of covering data loss or corruption. For cyber insurers, relying on a paper policy that stays on the shelf year after year isn’t enough. Instead, businesses should seek out an insurer that will not only keep their business secure and operational during and after a cyber catastrophe but will also assist them in proactively managing cyber risk. Here are a few strategies businesses can implement.
Look for service providers who can assist in risk management
One of the most common misconceptions regarding cyber security is that it is solely a technological challenge. As a result, the widely recognized strategy has been to use additional technology to combat the problem, including access controls, firewalls, sandboxing, and EDR (Endpoint Detection and Response) tools. While these tools are useful for cyber prevention and mitigation, ransomware is fundamentally a risk management issue.
The insurance business is uniquely positioned and incentivized to assist consumers in managing and mitigating their cyber risk. A competent cyber insurance provider goes above and beyond paying claims, actively assisting customers in identifying, managing, and reducing white-hot cyber risk areas.
Cyber insurers should establish clear standards for the lowest achievable level of security, along with the support to assist companies matching those standards, by assessing a prospective policyholder’s cyber hygiene free of cost, then identifying any mandated patches or policy and technology modifications required to mitigate risk, similar to how property insurers provide engineering evaluations of policyholders’ buildings.
Make third-party security a top priority
The risk that third-party technologies, such as MSPs, public cloud providers, and other SaaS apps, pose is a major exposure point for firms, particularly small and mid-sized businesses. Recent ransomware attacks have taken advantage of these platforms to propagate throughout businesses and cause the most harm. A good cyber insurance partner can help customers understand the full scope of their risk across their whole business and eliminate crucial security vulnerabilities that could lead to sensitive data being exposed to third parties (and vice versa).
Businesses can mitigate third-party risk, transfer it to another organization, or accept it. If a policy does not cover third-party platforms and applications, the company is, whether they realize it or not, self-insuring for that risk. A reputable cyber insurance provider will keep an eye on these potential threats and assess if the entire ecosystem is secure against attacks.
Dedicate to comprehensive coverage
Many insurers are limiting their coverage for cyber catastrophes by forcing policyholders to pay a fixed percentage and other stipulations that raise costs. Comprehensive coverage is necessary, but many insurers have added loopholes to lower coverage, so it no longer means as much as it once did.
Cyber insurance has to return to reasonable prices and high-quality, proactive protection and claims mitigation services for business interruption from all cyber events in order to provide comprehensive coverage. Ransomware, various types of cyber extortion, and data breaches are all examples of this. Rather than keeping firms in the dark, the right provider will account for the rising number of state-sponsored attacks.
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