Cyber Insurance Loss Prevention

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Loss Prevention- Avoid a Data Breach by Knowing the Cyber Security Requirements

In the past, carriers offered cyber insurance without fully understanding the scope of frequency and severity of resulting damage. This lack of understanding is likely the reason for much of their incurred losses.  Carriers are now fully aware of the dangers of cybercrime and have consequently amended their security underwriting requirements for clients.

Today, an application for a cyber policy involves completing a questionnaire asking for specific details of your existing cyber security protocols and procedures. Your policy application may only be approved if these five critical controls are in place.

Multi-Factor Authentication (MFA)

In recent years, various organizations have started to require multiple-factor authentication (MFA) for cybersecurity. MFA helps secure sensitive information by requiring multiple methods to verify a person's identity. For the typical form of MFA, users must furnish passwords, fingerprints, or other biometric data. However, other forms of MFA can be used, such as requiring a user to possess both a physical token and a knowledge-based factor (such as a PIN code).

MFA can help businesses ensure that only authorized personnel can access sensitive data in case of a breach. MFA can prevent substantial monetary penalties and damages from a data breach. Therefore, MFA has become an essential component of a complete cybersecurity strategy.

Security Awareness Training & Testing

Cyber insurance for enterprises requires their employees to undergo security awareness training and testing. This helps businesses reduce their risk of an attack by preparing employees for precautionary measures. Regularly conducting mock phishing campaigns (i.e., testing) will strengthen your employees' baseline level of vigilance regarding emails.

Separate System Backups

Some assume one backup method is sufficient to shield them from hacking threats, but this is false. To ensure no data loss, keep your backups separate from your environment. This way, you'll still have a second copy of your data if the primary copy is compromised. Furthermore, you should have backups saved in different locations to protect your data if one location's data is lost.

It's helpful to have separate backups in multiple locations to secure your data from cyber-attacks.

Endpoint Detection & Response/Managed Detection & Response

A crucial checkpoint is whether your business has suitable endpoint detection and response (EDR) or managed detection and response (MDR). EDR and MDR are key components of any successful cybersecurity program because they can identify and block high-risk or unusual system behaviors. EDR is a tool used to detect malicious activity, while MDR is a service that people will check and take action to respond to threats.

Vulnerability Management

Vulnerability management is the practice of identifying, classifying, repairing, and mitigating vulnerabilities. It's a practice your organization should implement consistently into its cyber security plan.

An information system, component, or application with a weakness or flaw is called a vulnerability. Vulnerability scanning is a critical component of vulnerability management.

External vulnerability scanning can aid companies and identify vulnerabilities in their network before attackers can exploit them. Conducting regular vulnerability scanning can help defend your system against external threats. Internal vulnerability scanning can lower your risk of exploitation and help you find flaws that internal malicious users may exploit.

Insurance providers generally want businesses to have an active and thorough vulnerability management program to qualify for coverage. Cyber insurers view vulnerability management as crucial to risk management and loss avoidance.

Cyber insurance is a complicated subject, so there is no single solution. However, companies must take the time to thoroughly evaluate their exposure to loss before deciding on the options available in a cyber policy. Companies that neglect to enact adequate security measures may be unable to get cyber insurance. Remember, security is constantly evolving, what you may have implemented last year is no longer sufficient. So, your security requirements may change the next time you renew your coverage with an insurance company. Be sure you stay updated with the latest security developments.

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