With cybercrime at an all-time high, and data breaches costing companies millions, proper network protection has never been more important. Between these cyber threats, malicious attacks, and data breaches, businesses need cyber insurance to protect themselves from financial ruin.
But what exactly is cyber insurance and what are the cyber insurance requirements? Let’s discuss.
What is Cybersecurity Insurance?
Cybersecurity insurance protects businesses and helps them recover the financial losses caused by data breaches, theft, system hacking, ransomware extortion, and more.
Businesses can get cyber insurance to cover a variety of cyber-related incidents, such as the cost of forensics for determining how the data was exposed, notifying customers about a breach, or restoring stolen data. Some insurers may also cover the legal costs and fines associated with cyber incidents.
Types of Cybersecurity Coverage:
First-Party Coverage
Covers direct costs incurred by an organization due to cyber events. This includes things like damage caused by ransomware and lost assets or income due to network downtime.
Third-Party or Liability Coverage
Protects businesses from claims made against them in cases where they are found liable for a cyber event. Examples include privacy violation lawsuits and investigations into unauthorized data access.
Technology Errors and Omissions
Covers legal fees associated with defending claims against a business for cyber-related errors and mistakes.
Which Businesses Need Cyber Insurance?
Every company, whether small or large, is at risk of a cyber attack or a data breach. Many companies are not prepared to handle the financial impact of such events, which can be devastating in terms of lost profits and damaged reputations.
As such, cyber insurance has become essential for businesses that collect, store, and share confidential or sensitive customer information. This includes organizations in healthcare, finance, retail, engineering, and technology industries.
Cyber Insurance Requirements
When looking into cyber insurance it’s important to understand that certain cyber security measures should be in place before applying for coverage. Let’s take a look at a few of the cyber insurance requirements so you can see if your business is cyber insurance ready:
- Multi-Factor Authentication (MFA): MFA is one of the more common forms of basic cybersecurity. By utilizing two or more forms of authentication, businesses can better protect their systems against cyber threats.
- Security Awareness Training: Employees should be trained on how to recognize cyber threats and best practices for cybersecurity.
- Separate Backups: Backing up your data is essential in case of a cyber attack or system failure. That’s why it’s important to have separate backup systems in place that are not connected to the primary network.
- Endpoint Detection: Endpoint detection technology is used to monitor user activity and detect any malicious behavior. This helps organizations identify threats before they become too costly.
- Vulnerability Management: Organizations should use vulnerability scanning tools to test for weaknesses in their networks and patch them as soon as possible.
Protect Your Business From Cyber Threats With Bethany Insurance
Cyber insurance is essential for many businesses. If you are interested in learning more about cyber insurance and what the cyber insurance requirements are, Bethany Insurance can help. Contact us today to learn how cyber liability can protect your business from cyber threats!
