Cybersecurity insurance is a form of business cover that helps organizations financially recover from cyber-attacks. While it is a relatively new type of cover, the market is booming. As a result of increasing cyber threats, the number of organizations with cyber coverage has increased from 26% in 2016 to 47% in 2020.
However, over the past couple of years, cyber insurance premiums have skyrocketed, meaning many organizations now struggle to afford insurance. The good news, though, is that all is not lost. It’s still possible for SMBs to get affordable cyber insurance if they play their cards right. Below, we’ll explore how to do it.
The State of Cyber Insurance in 2022
According to statistics, cyber insurance costs steeply climbed by over 100% in the first quarter of 2022. During this period, we also saw an increase in organizations being declined cover or being offered cover with very limited coverage.
Chances are, you’re wondering why the market is so rickety at the moment. There’s a few reasons.
Firstly, cyber threats are becoming more sophisticated and successful, meaning insurers are often running at a loss. With the advent of ransomware and supply chain attacks, many organizations with cover have turned to their providers to help them financially. This means insurers have struggled to turn a profit. At the end of the day, insurance is a business and these organizations need to make their business models sustainable. As a result, their hiking up insurance premiums to prevent further losses.
At the same time, cyber insurance has also become more popular in recent years. While, in 2016, only a few organizations had it, today, every company wants it. Naturally, this level of demand is driving up prices.
Does Your Business Need Cyber Insurance in 2023?
If your company is contemplating whether to renew your insurance, or get insurance in the first place, it’s vital to know that cyber insurance cannot stop a cyber attack. It simply helps you to recover should the worst instance happen.
Given that cyber insurance is now becoming harder to come by, how can your organization find cover within the right cost bracket? It comes down to being proactive about security.
Insurance is, ultimately, related to managing risks. Insurers have realized that if they offer cover to any and every organization, they’re going to lose money. As a result, they’ve started to put certain conditions and requirements in place for organizations seeking their services. In essence, insurers will only provide cover to organizations that show they care about cybersecurity.
With that in mind, here are some things you can do to lower your insurance premium:
Get The Security Fundamental Right
Your organization should have the right security fundamentals in place; things like multi-factor authentication, anti-virus, vulnerability scans and employee security awareness. If you don’t know where to start with these solutions, we can support you with securing computers, phones, servers, software, the cloud and more, so your insurance premium lowers.
Monitor Risks Continuously
Another thing you must do – and with which we can support you with – is continuous monitoring of your environment to discover, identify and mitigate cyber threats as they arise. Insurers want to know that you are staying on the pulse of security and being proactive about keeping your network, devices and data safe.
Monitoring isn’t a one-off exercise. It needs to be done 24/7, 365 days a week for adequate protection. You need to show your insurers that you’re taking security seriously and that the chances of a breach are low.
Keep Strengthening Your Security Posture
Malicious actors are constantly evolving their tactics to become more stealthy and sophisticated. This means that you also need to evolve and mature from a security perspective. We can help you stay on top of the latest cyber threats, providing tailored recommendations to keep your business safe.
Train Your Employees on Phishing and Other Threats
It’s thought that human error is responsible for about 90% of data breaches. To that end, you should educate your employees on common security threats and data loss causes, empowering them to keep your data and company safe. Adequate training is a huge thing that insurers look for as evidence that you are prioritizing cybersecurity in your organization.
Self Assurance Leads To Better Cyber Insurance
Ultimately, in today’s cyber insurance landscape, the best insurance is self assurance. You shouldn’t pay an extortionate insurance premium when you could instead bolster your own defenses, leading to more cost-effective cover.
Lower Your Insurance Premiums Today!
Our experts are on-hand to help you navigate the complex cyber insurance landscape. We can assist you with implementing the right security solutions to lower your premiums and also advise you on the best cover for your business. Find out more about how we can help you today.
ECN IT Solutions is a managed service provider (MSP) based in Tucson, Arizona that provides full-service, outsourced IT Support for companies across the Southwest. We offer network monitoring and management, cybersecurity, and a help desk with a response time of under 10 minutes. For more information, contact us online or call (520) 355-7553 and we’ll get in touch with you faster than you can believe.