Is your business covered by cyber insurance, or are you looking for coverage? You’ll notice that in the last few years not only are premiums rising, but cyber insurance companies are also asking businesses for more to qualify. Here’s what you need to know about the latest trends in cyber insurance, and how they can impact your business.
The Rising Cost of Cyber Insurance
The escalating frequency and severity of cyber threats, such as ransomware attacks and data breaches, have resulted in higher insurance claims, prompting insurers to adjust premiums to account for increased financial risks. Additionally, the growing costs associated with cyber incidents, including business interruption and regulatory fines, contribute to the uptrend in premiums. As cyber insurance coverage evolves to address new risks and offer broader protection, insurers are adjusting their premiums to ensure adequate coverage for policyholders against a wider range of cyber threats.
Cyber Insurance Requirements Are Also Changing
It’s important to know that Insurance companies have been setting new, stricter requirements for businesses to qualify for cyber insurance due to the growing complexity and financial impact of cyber incidents.
Some of the new criteria include:
1. Detailed Risk Assessments
Insurers are asking for risk assessments that outline the specific cybersecurity risks faced by the business, including vulnerabilities, potential threats, and existing security measures. This detailed analysis helps insurers understand the unique risk profile of each business and tailor coverage accordingly.
2. Proof of Cybersecurity Measures
Businesses are required to demonstrate their cybersecurity practices and controls, such as firewall configurations, encryption protocols, employee training programs, incident response plans, and regular security audits. Insurers seek evidence of effective security measures to assess the business’s level of preparedness against cyber threats.
3. Endpoint Detection and Response (EDR)
Insurance companies view EDR as an essential requirement for cyber insurance policies as it demonstrates proactive cybersecurity measures and a commitment to cyber resilience. MEDR (Managed Endpoint Detection Response) offers EDR capabilities as a Managed Service, providing continuous monitoring, threat detection, and incident response support.
4. Incident Response Planning
Businesses need to outline procedures for detecting, containing, and mitigating cyber incidents to minimize potential damages and facilitate a swift recovery process.
5. Regulatory Compliance Documentation
Compliance with data protection regulations, such as GDPR, HIPAA, or industry-specific standards, is now a key requirement for cyber insurance eligibility. Businesses must provide documentation to prove adherence to regulatory requirements, ensuring that sensitive data is adequately protected.
6. Employee Training Programs
Insurers may request details about employee training programs focused on cybersecurity awareness and best practices. Educating employees on cybersecurity risks and safe online behavior is key in preventing human error-related incidents, making employee training an essential consideration for insurers.
If you’re actively searching for cyber insurance coverage, it’s important to know that you must be able to prove the information you’ve stated in your application in the event of a claim.
Now is a good time to review your cyber insurance policy with your provider to make sure you have the coverage you need, and that you have the measures in place to meet their requirements in the event you need to make a claim.
About TSG
The Swenson Group (TSG) is an award-winning Bay Area Managed Service Provider that has helped thousands of organizations achieve more by leveraging cost effective technologies to be more productive, secure and cost effective. Services include Managed Print, Document Management, IT Services and VoIP. Products include MFPs, Copiers, Printers and Production Systems, Software and Solution Apps. For the latest industry trends and technology insights visit TSG’s main Blog page.
