cyber pillars with lock

Meeting Your Cyber Insurance Requirements: A Guide

How To Find Out If You Are Meeting Cyber Insurance Requirements

In the age of rampant cyber attacks and data breaches, having robust cybersecurity measures is no longer optional for businesses. With so much at stake, a solid cyber insurance policy serves as a financial safety net. However, simply having an insurance policy is not enough; your cybersecurity measures must actually align with the policy’s requirements to get coverage.

So, how can you be sure you’re covered in the event of a breach? The key is to bridge the gap between your IT company and insurance broker to ensure there are no oversights in cybersecurity. In this guide, we will cover common cyber insurance requirements, and guide you through verifying if your cybersecurity and insurance requirements are aligned.

What Is Required for Cyber Insurance?

Cyber insurance requirements can differ from one policy to another, but typically include robust firewall configurations, enabling 2FA/MFA, endpoint detection and response, regular vulnerability assessments, reliable backups, device encryption, and cybersecurity awareness training for employees. According to Cybersecurity Ventures, 95% of cybersecurity breaches are due to human error, highlighting the importance of employee training.

Cybersecurity Liability Risks

Insurance can cover ransom payments, legal fees, settlements, and regulatory fines. However, if your business fails to meet the policy’s requirements, these coverages might become void. Understanding the scope of your insurance policy in relation to your current cybersecurity posture is crucial.

Aligning Cybersecurity and Insurance Policies

Further, If your cybersecurity provider has NOT met with your insurance provider to review your cyber attack coverages, your organization could face significant risks. Your cybersecurity and insurance providers need to confirm that your business has implemented the appropriate cybersecurity measures as stipulated by your insurance policy. This alignment is crucial to ensure coverage in the event of a data breach. 

Without this verification, your organization risks having its claims denied due to non-compliance with the required security protocols outlined in the policy. When signing a cybersecurity insurance policy, a business essentially attests that it has the correct protections in place as per the policy’s stipulations. Therefore, businesses must understand that ensuring alignment between their cybersecurity measures and their insurance policy’s requirements falls squarely on their shoulders.

Is There a Mismatch Between Your Cybersecurity Protections and Your Insurance Policy’s Requirements?

This is the million-dollar question, sometimes quite literally. If you, your Managed Security Services Provider (MSSP), or other IT services provider is unaware of your cyber insurance policy’s specific requirements, there could be significant gaps in your coverage.

Third-party Assessments and Risk Management

Use third-party assessments to check if your current cybersecurity measures match your insurance policy’s requirements. The Ponemon Institute reports that 56% of organizations have experienced a data breach caused by one of their vendors. So, make sure that your third-party assessments also focus on the cyber hygiene of your vendors and partners.

Has Your Current IT Company Asked What Protections Your Cyber Insurance Policy Requires?

Before choosing a cybersecurity services provider, it’s crucial to align their offerings and capabilities with your policy’s specifications. Ask them if they provide Managed Cybersecurity Services that follow NIST controls or other recognized cybersecurity frameworks such as CMMC, FTC, and HIPAA.

Cybersecurity Services and SecOps

A comprehensive IT security suite should offer features like two-factor authentication (2FA), multi-factor authentication (MFA), data encryption, hard drive encryption, and dynamic access controls. Make sure your security operations (SecOps) align with these requirements.

Does Your Current IT Company Help With Policies and Procedures? 

Your IT company should help you formulate Policies and Procedures that are in harmony with your cyber insurance requirements. They should guide you in implementing role-based access control, Discretionary Access Control, and Attribute-based Access Control mechanisms.

Cyber Insurance Policy Inclusions

Typically, a cyber insurance policy should cover incident response plans, separate backups, and privileged access management solutions. According to a report by Gartner, 77% of risk management leaders say their organizations are not prepared for critical security risks. Make sure your cybersecurity measures and policy inclusions are symbiotic.

Actionable Steps to Align Cybersecurity and Cyber Insurance

  1. Review Your Cyber Insurance Policy:

    Discuss the policy with your insurance broker to understand the specific cybersecurity insurance requirements.

  2. Consult Your IT Company:

    Connect your IT company with your insurance broker to ensure that they are well-versed with your insurance requirements and are willing and able to align their services accordingly.

  3. Conduct a Gap Analysis:

    Involve a third party to assess how your current security measures stack up against your policy’s requirements with a cybersecurity assessment.

  4. Employee Training:

    Since human error is still the #1 cause of breaches, invest in ongoing security awareness training for all employees.

  5. Regular Updates and Audits:

    Cybersecurity is dynamic. Keep updating your security measures and conduct regular audits to make sure you stay compliant.

Get the Right Cybersecurity to Match Your Insurance for Full Protection

You deserve cyber insurance coverage that can actually protect you in the event of a data breach. The way forward is to align your cybersecurity measures with your insurance policy’s requirements. And this involves active collaboration between your IT company and insurance broker. Has your IT company talked to you about this?

Don’t risk your organization’s future by assuming everything aligns perfectly. Take active steps to match your cybersecurity protocols with your insurance policy. With our Managed Cybersecurity Services, you can rest easy knowing you’re fully covered and prepared for any cyber challenges that may come your way.

Ready to ensure your security matches your cyber policy requirements? Connect with our experts today at (844) 601-MSSP and be 100% confident that YOU are meeting the cyber insurance requirements YOU agreed to.