Why Your Insurance Company is Asking About Cyber Security

Why Insurers are Affected by Cybersecurity

Cybersecurity is a critical concern for businesses of all sizes, and insurance companies are no exception. As organisations grapple with the increasing frequency and severity of cyber threats, insurance companies are keenly interested in understanding their policy holders' cyber security practices. Here's why your insurance company is asking about cyber security, and how you can try to bring down your insurance premiums.

How exactly are business insurers affected by cyber security? If a business is successfully targeted by a cyber attack, there are costs attached:

• Criminals who execute ransomware attacks withhold business data until paid a fee.
  
• Regulators enforce fines for data breaches.
• There is a cost attached to repairing and replacing compromised infrastructure.
• Income losses due to downtime and reputational damage can be vast.

So it follows that by improving their cyber security posture, a business should be able to lower their insurance premiums. There are 6 things a business can do in this regard:

1. Multi-Factor Authentication. Enable MFA across every device in your environment. If you ever need to claim against a business cyber insurance product, one of the first things your insurance company will ask is if every user affected by the attack had MFA enabled.
2. EDR. Procure Endpoint Detection and Response Technology from your IT Company. This is the technology that has replaced anti-virus, and is available to all customers of Mason Infotech's managed cybersecurity services.
3. Employee Training. Make sure your teams understand and enact your information security policies.
4. Cyber Risk Assessment. Conduct a thorough risk assessment specific to your business. Understand your vulnerabilities, evaluate potential threats, and implement targeted security measures. Insurers value proactive risk mitigation. If you're unsure where to get started here, you can book your free audit from Mason Infotech here.
5. Regular Backups. Implement robust data backup procedures. Regularly back up critical data and systems to minimise the impact of ransomware attacks or data loss. Having reliable backups can demonstrate your commitment to risk management. Back ups also mitigate ransomware attacks.
6. Invest in Cybersecurity Insurance. There are multiple specific business cyber insurance policies on the market. Purchasing a specific cyber liability insurance policy provides your business with financial protection against cyber crimes and data breaches.
   

Implementing all of the above can help your business to show your insurance company that you take cyber security seriously, and seriously reduce your likelihood of falling victim to an attack.