Cybersecurity Insurance 101

As cyber threats evolve, so has the approach to managing these risks. Measures like multi-factor authentication (MFA) and endpoint protection are becoming increasingly important, but what if your security measures fail? How can you protect your business from becoming one of the 60% of small businesses who close following a cyber breach?

What is Cyber Insurance?

Cyber insurance is a type of insurance designed to protect businesses from the financial fallout of cyber threats such as data breaches, ransomware attacks, and other forms of cybercrime. It typically covers expenses related to data restoration, legal fees, notification costs, and sometimes, ransom payments.

Evolving Requirements of Cyber Insurance

Insurers always have measures in place to hedge their bets, too. Here's what most cyber insurance policies will require of policy holders.

• Risk Assessment: Insurers are placing greater emphasis on comprehensive risk assessments before providing coverage. This means evaluating a company’s current cybersecurity practices, incident response plans, and overall security posture.
• Increased Security Measures: As part of risk mitigation, insurers now often require businesses to implement specific cybersecurity measures, such as MFA and endpoint protection. Let's take a closer look at a few of these measures.

Multi-Factor Authentication (MFA)

MFA adds an additional layer of security by requiring users to provide two or more verification factors to gain access to a resource, like a database or an online account. MFA significantly decreases the chances of a successful cyber attack by making it harder for attackers to gain access, even if they have a password. Instead, you'll have to demonstrate something beyond a password. This could include something you know (a password), something you have (a smartphone), or something you are (biometric verification). Learn more about MFA apps we recommend in this video.

Endpoint Protection

Endpoints are just IT-speak for devices (like computers, mobile phones, and servers) that connect to a company's network. Endpoint protection involves securing these devices from malicious activities and threats.

The Future of Cyber Insurance

As cyber threats continue to evolve, so will the requirements for cyber insurance. Businesses can expect insurers to demand more sophisticated cybersecurity measures and a proven track record of effective cyber risk management.

Want to know more? Learn even more about cyber insurance from our conversation with an expert!