To mitigate the financial risk of cyberattacks, many organizations are turning to cyber insurance. Cyber insurance is an insurance product designed to help businesses hedge against the potentially devastating effects of cybercrimes such as malware, ransomware, distributed denial-of-service (DDoS) attacks, or any other method used to compromise a network and sensitive data. Also referred to as cyber risk insurance or cybersecurity insurance, these products are personalized to help a company mitigate the damage created if specific risks are exploited.
Always remember that mitigating the risk and scope of exploit is the first and most important step. To paraphrase an old saying, an ounce of exploit prevention is worth a pound of cyber liability cure.
To be clear — we’re not in the business of selling insurance here at Citon. But, we are passionate about promoting cybersecurity best practices – especially when it comes to keeping your business safe. If cyber insurance is something your organization is looking into, here are a few considerations before making your decision:
- Identify the cyber risks – There are more than a dozen different categories of coverage available for cyber threats. These can include a range of online and offline risks, spanning everything from data breaches to theft of corporate assets. By identifying these specific pitfalls upfront, you’ll be able to find the insurance that best meets your organization’s specific needs.
- Understand the policy coverage – Your existing insurance policies might be very complementary to these new cyber policies. Or it might not. Some businesses might also require a combination of products to get adequate coverage. It’s important to understand how each product could benefit your organization in the event you become liable for a data breach.
- Consult a professional – Damages resulting from cyber liability can be difficult to quantify and grasp. Translating cyber risks into a financial model is a key step in ensuring adequate coverage. If you don’t have the resources in-house, consider seeking guidance from a professional broker or subject matter expert who understands both worlds of business and cybersecurity risks. While you’re at it, dig into specific exploit scenarios and battle test those with your cybersecurity team and your agent.
- Get to know the claims process *before* you need to use it– Understanding the claims process when selecting cyber liability insurance is critical. Each insurance provider has processes set up for vetting a claim’s authenticity, along with a general timeline for which funds can be paid. If a data breach happens, you’ll want to know how quickly assistance will become available.
- Be aware of other insurance perks – While monetary relief is helpful, some insurance companies provide additional benefits such as cybercrime investigators or public relations firms. Finding out whether your coverage includes these services can help you manage the aftermath of a breach with greater ease and polish.
- Embrace the Security Cycle – Keep in mind that in order to be effective, your security posture and strategy must evolve, as your business and the threat landscape change. Think of the security cycle as a journey, rather than a destination.
Managing Risk Beyond the Insurance
Cyber risk insurance can be a great way to mitigate the damage caused by a breach, but it should complement cybersecurity technology as part of an overall cyber risk management plan. Cyber risk insurers analyze the strength of a company’s cybersecurity posture before issuing any policy. Strong security postures allow for better coverage and, in some cases, access to coverage enhancements. On the flip side, a fragmented enterprise security strategy can make it difficult for insurers to fully understand an organization’s security posture. This can result in inadequate or poorly targeted insurance purchases by insured companies. It bears repeating… you need to have a strong security posture first! If your business has not invested in the appropriate cybersecurity solutions, then you may not qualify for insurance or it could be limited and expensive.
By choosing to subscribe to cyber insurance you are transferring the risk to another entity, but you still need to do your part to avoid being an easy target and to minimize risks within your organization. One way to do this is by discussing cybersecurity with your integrator and vendor to help strengthen your cybersecurity systems and policies using their expertise. The good news is that Citon’s solutions are designed with multiple security layers and we employ advanced authentication and encryption technologies. We help you understand the threat actors and assess potential security risks, while our comprehensive approach assists you in mitigating that risk and building a defense-in-depth strategy to achieve greater cyber resilience.
If you’d like to know more about how Citon’s cybersecurity services can benefit your business, reach out anytime — we’re local, friendly and here to help protect what you’ve worked so hard to build!
Acknowledgements include: Mathieu Chevalier, Genetec, Inc., Travelers Indemnity Company, and the Journal of Cybersecurity