Today, technology plays a critical role in every business. As a result, network security and data protection has become a leading risk, often at the forefront of boardroom discussions. Examples of cyber security risks include malware, viruses, ransomware and phishing attacks.
What is cyber insurance?
Cyber insurance is designed to help businesses recover from cyber-attacks such as loss of data and privacy breaches. While cyber insurance cannot prevent a security breach, it can assist in the event of an attack.
What does cyber insurance cover?
In most policies, cyber insurance covers your own losses (first party), in addition to your liability to others as a result of a breach (third party).
First Party Includes:
- Business income loss
- Forensic costs
- Extortion costs resulting from a ransomware attack
- Network restoration costs
- Cost to replicate or replace lost data
- Public relations costs to minimise reputational damage
Third Party Includes:
- Liability for third-party damages
- Regulatory fines and penalties
- Public relations costs
- Forensics costs
- Legal defence costs
There are several factors that may help to reduce your cyber insurance premiums:
- Robust Firewalls: Determine whether to allow or block network traffic based on a defined set of security rules.
- Regular updates / Patching regimes: This ensures security vulnerabilities and bugs are amended.
- Anti-Virus Software: Helps to prevent, detect, and remove malware.
- Staff Education: Staff should be regularly made aware of threats, know how to respond to an attack, and be tested regularly.
- Multi Factor Authentication (MFA): An additional security step that confirms you are attempting to gain access to your accounts, not a hacker or opportunist on the internet.
- Using a Managed Service Provider: Some insurers will reduce premiums if a company can demonstrate that it is using a well credentialed Managed Service Provider (MSP).
Although cyber insurance can help businesses to recover from a cyber security breach, it is important to have adequate security mechanisms and protocol in place to mitigate risks as much as possible. This mitigation could even help reduce your cyber security premiums!
To learn more about how IT Partners can help with your businesses cyber security please get in touch via email or phone 07 957 2650.