How To Qualify for Cyber Insurance and Even Reduce Current Costs

Cybercrime continues to grow at a rapid pace and if your business is not properly protected it could have damaging consequences. Over 50% of small businesses have experienced a data breach of some type. That's why it's more important than ever to make sure you are protected with the best Cyber Insurance. 

Cyber Insurance is a paid protection coverage plan that helps aid companies when they suffer from internet cyber-attacks. These cyber-attacks include but are not limited to malware, ransomware, and hacking. In other words, an incident that puts information, money, and other things in jeopardy. 

If you are unfamiliar with cyber insurance, have no fear! This article will explain what it is and what it covers and will walk you through how to help your business qualify; while also showing you how to make it as affordable as possible. 

We even did the homework for you to find one of the best companies to help you get qualified. If you keep reading this article we will even show you how to get a free consultation with the highly recommended Cybersafe Solutions. 

Cybersafe offers free consultations to evaluate the eligibility of your company and readiness against cyberattacks. In this tech-dependent society, it is of utmost priority to safeguard your company from potential hackers, ransomware, and other internet attacks through cyber insurance.  

What Is Cyber Liability Insurance? 

With technology increasing every year and companies becoming more reliant on it during the COVID-19 pandemic, cyber insurance has been essential for many businesses to protect their information. 

One destructive cyber attack can shut a small business down forever, so it's essential to purchase protection.

By investing in cyber insurance, your company will have some protection and will be covered from any financial losses during the breach. 

While it cannot prevent cyber-attacks from occurring in the first place, cyber insurance will help diminish the number of losses caused by such attacks. As the internet is a major source and tool in businesses, hackers will adapt and try to profit and scam businesses on a cyber platform. Being vigilant and purchasing cyber insurance can help limit damages. 

The Costs of a Data Breach

Data breaches can result in the theft of company information and the breach of privacy for both employees and customers. However, there are many other consequences beyond a breach of security. Financial records, money, business, and contracts could be compromised. 

Once a customer sees how you handle the situation, they may find a different company to work with if you fail to properly notify them or protect their information, especially if they learn there was no protection in place. 

Customers want to work with a company that has their confidence and trust; betraying the trust will lose customers. We spoke with Joey Metz of Fides Communication, a B2B technology consulting firm, who stated that oftentimes he, unfortunately, sees many companies treat Cyber Security and Cyber Insurance as a "nice to have" vs an essential piece of their business.

Other losses are time and money; you lose time trying to recover and resolve the breach and you lose money when paying to repair the problem while also being unable to run during the recovery period. Beyond that, it is endlessly frustrating to put the pieces back in place. 

With those potential losses at risk, it is worthwhile to invest in cyber insurance. If you are ready to protect your business we were able to secure a limited-time offer for a no-obligations assessment with CyberSafe for our community. 

Cyber Insurance Coverage

Cyber insurance typically covers any immediate costs of being a victim of a cyber-attack. Notifying customers about the breach in information, restoring the personal identities of affected customers, and recovering any stolen information and legal fees and expenses are some of the costs covered. 

Further, compromised data and damaged computer systems are also eligible to be repaired or replaced within cyber insurance policies. 

What Isn't Covered In a Cyber Insurance Policy? 

It will depend on the company from which you purchase cyber security insurance. But most cyber insurance coverage will not cover the following: 

• Financial damage stemming from loss of intellectual property. 

• Failing to implement any initial cyber security practices before the attack. 

• Long-term losses of income

• Act of war 

It's best to investigate each potential insurance closely to ensure they have the coverage your business requires. As many small businesses fall victim to cyber-attacks, such as financial institutions, healthcare departments, and legal organizations, various forms of protection more appropriate for your specific business are out there.  

What Should I Consider? 

After you have decided that cyber insurance is something to invest in, these are a few things for you to look at. 

What Does Your Company Need?

As said earlier, based on your business field, different things are at risk. In a healthcare setting, protecting patients' health records and privacy is an utmost priority. 

Different cyber insurance companies will offer different rates to help you, so taking into account everything your business needs will give you the best plan. 

Conduct a Cyber-Risk Assessment 

Figure out the level of risks for your business. What is currently protected and what are things that need improvement or additional security? How often are you running into risks? How much more protection and security do you need based on the assessment score? 

Basic Security Measures 

We'll get into this further in the next section, but at the base level, you'll want to ensure your company is already actively using some type of security precaution. 

There are a few different ways for how these security measures look, but most important is having some already adopted into the system. One such example is fingerprint identification, common for both phones and computers. 

 

What's Needed for My Business to Qualify?

One of the most important things is for your business to already have a sound cybersecurity system in place. Proving to insurance companies that you take internet safety seriously will show that you are actively trying to prevent cyber-attacks through the security measures you've already adopted.   

We'll share a few examples of cybersecurity with you below. 

Multi-Factor Authentication 

Multi-Factor Authentication is an easy and simple way to add a few extra fences around your information. With two or more passwords or requests for login information, there is another safety net to ensure that the people accessing these accounts are who they say they are. 

A simple password and username are information that can easily be stolen and used by an outside party. Adding extra barriers such as security questions or asking for fingerprint or facial identification (which is possible with today's technology) will assure that the person attempting to get in is the person who has permission to get in.

Additionally, when a suspected breach is identified emailing the person who has supposedly logged in will provide further verification. If they confirm that they were the ones who attempted, then you know for sure. However, if they deny that it was them, you now know you have a security breach going on.  

MFA should be implemented across the entire workforce to make sure no crooks or crannies are left vulnerable. While certain employees won't have access to certain departments anyway due to it not being in their field, hackers still have the potential to get in elsewhere.

This can be combatted by performing routine maintenance; disabling access for former employees for one instance. 

24/7/365 Continuous Security Monitoring 

Keeping an eye out on the internet for suspicious activity is another way to keep your business in the green. If you suspect any scams, emailing and keeping your customers and employees informed will help prevent them from falling for scams until you can eliminate them. 

An IT service can assist by checking the internet regularly to catch anything suspicious or dangerous and will likewise alert employees as soon as possible when issues do crop up. 

Backing Up Information 

While backing up regularly is generally a good idea to manage your information, it also has security benefits. Consider where this information is backed up; is it in a separate location from the company?

Making conscious decisions to keep information saved in another location separate from everything else can keep it from being stolen. Having a second copy of it can also ensure you still have access to it. 

Network Segmentation & Patch Management 

Network Segmentation & Patch Management help with maintenance in your internet settings. Segmentation helps break up the parts of your network into more manageable sections.

Additionally, if your information is separate and one section is seized during a cyberattack, you know that not all the information was compromised or inappropriately accessed. 

Furthermore, keeping access isolated to only certain devices (for example, computers distributed by the company for employees) will also keep the access limited to only those within the department. 

Granting access to company sites through personal computers creates more areas for hackers to slip in, so keeping access small is in the best interest.

While you may not need to have everything implemented, these are some general low costing approaches your company can employ on its own before getting cyber insurance. While cyber insurance does provide stronger protection, it is much better to have both cyber insurance and your cyber security methods in place. 

Don't wait until a threat becomes a breach. Get a Free Consultation with a Cyber Security Pro!

Cyber Insurance Checklist 

To sum it up, cyber insurance covers the following:

• Notifying customers about the security breach 

• Restoring the personal identities of customers that were affected  

• Legal fees and expenses 

• Compromised data and retrieval of stolen data

• Damaged computer systems 

Ways To Reduce the Cost 

One of the best ways to reduce the cost of your cyber insurance is by upping the security standards your company already has. Showing potential insurers your company is attentive to potential risks makes them feel comfortable enough to ensure you. You can show attentiveness in a couple of ways beyond the beginner security procedures. 

Password Management 

Regularly updating your passwords and keeping them to a standard (making passwords harder to hack and keeping them accessible outside of the computer network) shows that your company is on top of potential risks. 

Employee Training 

Mistakes do happen but having the proper training to teach employees how to avoid scams or fake viruses is essential. Not only training but an official policy put in place will show how dedicated the business is to being cautious and equipping all employees with the knowledge they need to avoid these issues.  

Best Cyber Insurance

That's a lot of information we just tackled. After considering your business's need for cyber-security, and gauging the current security measures, you may still feel very lost.

A lot of action is required to put in this protection, and you might not know where to start or maybe not fully know what you have to do. 

Why We Recommend Cybersafe

After scouring the web and multiple phone calls to tech companies, we finally found one who was able to help. They even offer free consultations to not only ensure your company meets the requirements for Cyber Insurance, but also help you with ways to reduce the cost. 

If you are feeling overwhelmed, we highly recommend contacting a company like Cybersafe to assist you with your available options. Their free consultation will evaluate your business and recommend plans that will fit your budget and fit your needs for security. 

One of the best cyber insurance companies around, Cybersafe has been trusted for over 20 years. What is unique about them is their ability to formulate custom plans for your company. They have the experience and knowledge to craft an individual plan to best protect your business from threats. 

Cybersafe is also increasingly active- workers are constantly researching and updating their safety measures regularly, to continually learn how to best keep up with hackers and ransomware. 

Cybersafe also offers customer service 24/7/365 so you'll never have to sit and worry if the crash or cyber-attack occurs during the weekend or at any other inopportune time. 

Conclusion

This list is important because millions are affected by internet scams and hackers every single day. It can be frustrating and very disheartening, but by following proper protection, your company can recover. 

Sometimes all it takes is a single attack to wipe a company out, resulting in lost income, sensitive data, customer information, and so much more. As a business owner, the weight of such an attack can rest on your shoulders. But now that you know more about protection methods, you can protect your business from possible cyber attacks.  

In an era deeply dependent on technology, it is essential to safeguard from potential data breaches, cyber incidents, and other cyber risks.  

If you have any other questions or insights into the world of cyber insurance, comment below to let us know your thoughts. We'd love to hear from you! Remember to check out Cybersafe's free consultation to get a step closer to better internet security and protection. Being proactive is the best way to stay ahead of hackers.