Cyber-attacks are becoming more and more common. Enterprises and businesses of all types are targets for cybercriminals looking to steal financial data or insights, disrupt operations, or even destroy data.
Cyber risk is a top concern for business owners. In addition to other factors that may increase your premium like new technology, industry or location, the cost of cyber insurance can be particularly high.
What is cyber insurance?
Cyber insurance is a policy that covers liability for damages resulting from an incident of cyber risk. This could include data breaches and other cyber security incidents.
Cyber insurance policies are different from traditional insurance policies in a number of ways. For example, most traditional insurance policies cover losses caused by natural events like hurricanes and earthquakes, but not losses caused by human activity. However, many cyber insurance policies are now available to cover losses that are caused by cybercriminal activity.
How to reduce your cyber insurance premium
Conduct a cyber risk assessment
To understand your company’s cyber risk, you first need to conduct a cyber risk assessment. A cyber risk assessment will help you determine how risky your business is, who your main cyber risk is, and what you can do to reduce it.
Once you have completed your assessment, you’ll have a better idea of the cost of cyber insurance, as there are many factors that can contribute to the cost of a cyber policy – from your industry, to the technology used in your business, and the location of your office.
Good password management
A strong password should have at least 12 characters or more, combining a mix of upper and lowercase letters, numbers, and special characters. It should be unique for each account and changed regularly.
Your people should also avoid saving password information on devices such as laptops or phones, as this can be a security risk.
Implement multi-factor authentication
Multi-factor authentication is the use of two or more different pieces of information, like a password and a one-time code, to verify someone’s identity before they can access an account.
MFA can add a layer of protection by keeping your own employees from accessing the system, as well as prevent cyber-attacks by making it more difficult for cybercriminals to access the system.
Train employees on best practices
Training your employees on cyber security will help them identify malicious links, know what to do in the event of a data breach, and be vigilant about protecting company information. It will also help them understand the importance of cybersecurity in the workplace, and how it is linked to other aspects of the business.
Furthermore, providing cyber security training will help your employees feel confident in their ability to identify and protect against cyber risk, allowing them to work safely and securely.
Document incident response plans
An incident response plan outlines the steps a business should take in the event of an attack, including how to identify, contain, and remediate the attack. It also provides a set of procedures for how the attack should be documented, ensuring that critical information regarding the attack is not lost or forgotten.
Having an effective incident response plan can give insurers confidence that the business is taking the necessary steps to protect their data and systems. This, in turn, can result in a lower premium.
Find the right cyber insurance for your business
Adhering to cyber security frameworks will not only better protect your business, but prove to cyber insurance companies that your are serious about mitigating risk.
The cyber security experts at Itopia can conduct a full risk assessment of your business, advise you on security practices and tools you need to put into place, and help you reduce your cyber insurance premium.
Adam leads the Itopia team in Brisbane, helping professional-services firms get secure, productive and confident with their technology, in plain English.