Whether you’re a firm or a small business, we know you are always working to avoid unnecessary risk. So, when it comes to the question of, “Is cyber insurance worth it?”—there’s no doubt about the answer. (Yes!) Chances are, you have cyber insurance already, or you may be evaluating options right now.
While sources like PC Mag offer more in-depth coverage of what cyber insurance is and what different plans might look like, in short, cyber insurance helps cover any financial damages to your business should a cyberattack happen.
The Case for Cyber Insurance Isn’t a Hard One to Make
With cyberattacks up 600% following COVID-19, the overall case for cyber insurance isn’t a hard one to make. Often though, firms and small businesses grapple with whether they’re willing to pay high premiums for such insurance given the competing financial priorities they face each month.
In fact, according to a Forbes article, the rise in high-profile cyberattacks means that cyber insurance is also up. Not only is it increasingly essential but increasingly expensive, with premiums up 79% in Q2 of 2022 compared to 2021.
How to Reduce Your Cyber Insurance Premium
Luckily, there are ways to reduce your premium while still getting the protection necessary to run a secure, successful business. These steps have the added benefit of improving your security posture even while bringing your insurance costs down:
- Have a cyberattack response plan in place. Who will you call if a breach does happen? Do you have a way to mitigate any damage and fix any exploited vulnerabilities rapidly? If your firm or small business isn’t working with an outside partner to provide some level of threat mitigation, this is a good step to take to try to lower your premium. And, while you’re considering threat mitigation, make sure you have an ongoing monitoring service led by experts in place. This type of service helps prevent an incident in the first place without relying on your limited internal technology resources.
- Make your employees good stewards of data. According to Verizon’s 2022 Data Breach Investigations Report, 82% of breaches involve a human element. Training staff on avoiding new and emerging types of attacks on a monthly basis reduces your business’s chance of experiencing a cybersecurity breach.
- Protect your business-critical data. If you are breached, have a plan in place that helps your business avoid losing access to data.
For instance, if email account credentials are compromised, you need to have access to a separate, third-party backup service. Something that provides full, searchable and granular data backup capabilities in case you cannot access this main internal and customer communication tool becomes essential.
While many cloud application providers will offer some level of data replication as part of their service, it’s important to have your data fully backed up by a dedicated provider to ensure ongoing access to customer and business data. Replication is not the same as having full backups.
In addition to the above, there are several other concrete steps to lower your cyber insurance premiums. We recommend working with a trusted partner or consultant to identify them. Going through such an exercise at least annually helps establish a culture of security at your firm or business.
Right Networks helps businesses look at their security strategy more holistically; we’ll help identify any gaps where you may be vulnerable. Our free security assessments give us a chance to help enhance our customers’ data protection strategies.
The Question of “Is Cyber Insurance Worth It” Isn’t Hard to Answer (Especially if It’s Affordable)
The bottom line: As the threat landscape evolves, having reliable cyber insurance coverage is a must, but it also adds expense. However, there are several steps you can take to make such coverage more affordable while also improving your security posture.
Check out our on-demand webinar, How to Lower Your Cyber Insurance Premium through a Culture of Security, for more information.
And to receive your free security assessment, contact an Account Executive at 888-245-0292.