Thought Leaders: What You Need to Know About Cybersecurity Insurance – BizWest

By Scott Warner – Connecting Point –

As an IT service provider (MSP), we believe that businesses should have cyber-liability insurance. Insurance companies have been offering cyber-liability policies for years but the increase in negative (up to 485% in 2021) has come with the increase in claims.

The process of implementing/renewing cyber policies now includes the ability of the business to demonstrate compliance with the best practices to begin with or risk being rejected or paying additional fees. Below is a list of IT security protocols that are required for businesses that are operating with/renovating and minor changes that the business may face.

Usage/Repair Process

Most insurance agents require a background IT security measures, including:

– Consistent use of Microsoft patches/updates

– Dedicated email security tool

– Backup / disaster recovery method

– Multi-factor authentication (MFA) is supported by email, as well as remote access, and administrative accounts

– “Next-Generation Antivirus” tools for all endpoints

• “next generation antivirus” is called Endpoint Detection & Response and is more effective than conventional antivirus in preventing / recovering from ransomware attacks.

– Security awareness training / user testing

– Disaster Recovery documents and incident response plans

What Happened in the Cybersecurity Process

Insurance companies are lowering the product limits of other industries. In high-risk industries, insurers reduce their risk by limiting their coverage limits for ransomware.

Insurance companies deny claims when companies misrepresent their compliance with IT security requirements. There are many examples of insurance companies denying claims in the event of a breach – especially if they demonstrate a discrepancy between the IT security protocols the client claims to have, and what was actually present during the breach/attack. This makes the insurer responsible for all repairs and recovery.

Salaries continue to increase. Insurance premiums rose between 10% and 30% through the second half of 2020 and will continue to rise through 2022.

Developing a cyber-liability policy. Cyber ​​insurance is designed to protect your company against major risks such as cyber security/privacy, online business interruption, media issues and errors and omissions. The best policy for your business will have all kinds of features and should be designed to provide consistent protection.

Some companies require businesses to have a cyber policy in order to participate in advertising. Many industries where foreign contractors are bidding on projects now require the contractors to provide additional costs. This forces businesses to implement basic IT security measures to insure themselves, before investing in projects.

The result is that cyber insurance has progressed from a risk management tool to an essential tool for businesses of all shapes and sizes. Not all cyber laws are created equal, so finding the right partner to provide you with the right information is important. Connecting Point is here to help. Whether you are looking to prepare your business for insurance or need to upgrade your IT security to be covered, we will work with your business to properly plan and cover this, and many other IT security issues, processes and deployments.