Cyber risk is a significant concern for companies of all sizes and across all industries. Organizations need to take decisive action to strengthen their cyber defenses and manage their cyber risk through the combination of cyber insurance, secure devices, domain expertise, and technology.
- Step 1—Assess: The first step in reducing cyber risk is to assess cyber readiness with a respected professional services organization. This process includes carrying out a security audit before providing appropriate cyber insurance.
- Step 2—Implement: The next step is to implement technology that protects the elements an organization intends to take out cyber insurance against. This can include an anti-malware solution to protect the enterprise against the threat of malicious software.
- Step 3—Insurance: The first two steps enable an organization to prove they have the necessary processes and technologies in place to qualify for cyber insurance from a provider.
How to choose the right cyber insurance policy?
Pricing cyber risk will typically depend on an enterprise’s revenue and the industry they operate in. To qualify, they will likely need to allow an insurer to carry out a security audit or provide relevant documentation courtesy of an approved assessment tool. The information accrued from an audit will guide the type of insurance policy the provider can offer and the cost of any premiums.
Policies often vary between different providers. Therefore, it is best to review any details carefully to ensure the required protections and provisions are covered by the proposed policy. The policy also needs to provide protection against currently known and emerging cyber threat vectors and profiles.
Does Cyber Insurance Mean Cyber Defense
Cyber insurance should not be considered in place of effective and robust cyber risk management. All companies need to purchase cyber insurance but should only consider it to mitigate the damage caused by a potential cyberattack. Their cyber insurance policy needs to complement the security processes and technologies they implement as part of their risk management plan.
Cyber insurance suppliers analyze an organization’s cybersecurity posture in the process of issuing a policy. Having a solid security posture enables an enterprise to obtain better coverage. In contrast, a poor security posture makes it more difficult for an insurer to understand their approach, resulting in ineffective insurance purchases.
Furthermore, failing to invest in appropriate or effective cybersecurity solutions can result in enterprises either failing to qualify for cyber insurance or paying more for it.