What is Cybersecurity Insurance?

Cybersecurity insurance (or cyber insurance) is a policy that usually covers the costs related to cybersecurity breaches. This typically includes plans for recovering compromised data and repairing systems that were damaged in an attack. You may consider other things involved as well depending on the type of industry your business is in.

You don’t want to rely on these insurances to protect you from such an event. Just like any other insurance, you just want to have it to soften the blow of having to deal with these situations. You still want to do everything you can to prevent them from happening. On top of that, premiums for cybersecurity insurance has been rising.

Why are These Premiums Rising?

Cryptocurrencies made it possible to pay someone without being able to trace and block the transaction. This gave way to ransomware payouts, which is becoming a very lucrative activity for hackers. <Insert mind blowing fact about how much was payed out in the last X duration.>

A lot of companies are embarking on their digital transformation, but are neglecting their digital infrastructure, leaving it weak and vulnerable. These companies are easy targets for hackers. Before, companies would cover any risk of an attack with insurance, but with the rise in cyber attacks, insurance companies are less willing to cover these incidents and have since raised their premiums.

How to Lower My Cybersecurity Insurance Premiums

Insurance companies have caught on to security trends and found that they can provide lower premiums to companies who take basic steps to protect their digital assets. Most insurance companies have a questionnaire to investigate how many of these protections are in place.

Some basic ways to lower your Cybersecurity Premiums

  • Implement MFA (Multi Factor Authentication)
  • Install and configure a firewall to protect your network
  • Install an EDR (Endpoint Detection and Response) on all your Laptops/Desktops
    • This is software you install on every machine on your network that detects and responds to threats that are detected. This is usually paired with an Anti-Virus
  • Run an Anti-Phishing campaign in your organization

Usually the cost of implementing these preventative measures are less then the increased premiums, but even without that as a financial driver, it’s worth implementing these measures just to avoid the headache of a security breach, and to have the peace of mind knowing your digital infrastructure is more secure. See more on Digital Infrastructure

There’s companies that charge a lot for these solutions, but it’s possible to do them at a low cost. A lot of these improvements are easy to make, but it can be difficult if you don’t know where to start. Feel free to reach out to questions@e-mayhem.com if you’d like us to help get you started.

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