Cyber insurance is a critical safeguard for businesses and organizations in the face of ever-evolving cyber threats. Navigating the complexities of securing cyber insurance can be daunting, but its value is undeniable.
By obtaining cyber insurance, your business gains essential protection and peace of mind against potential cyber risks. Learn the benefits of qualifying for cyber insurance and how you can get the cyber coverage you need.
How Does Qualifying for Cyber Insurance Secure Your Business?
Rather than focusing on regulations or simply installing firewalls, qualifying for cyber insurance is a route to maintaining better security. In 2022, the average cost of a data breach in the U.S. was the highest in the world—$9.44 million. Small businesses can’t pay this upfront. Big businesses would take a huge hit. Cyber insurance companies provide coverage for these costs.
Because of the high cost of cyber crime and the risk cyber insurance providers incur when they provide cyber coverage, businesses must show that they have taken all necessary steps to be secure and compliant.
While upping security and strengthening your defenses seems tedious, would you rather be protected by a cyber insurance provider, or would you prefer to pay compliance fines and the cost of cyber crime?
Fortunately, we’ll show you how to get the cyber insurance coverage you need.
Your Cyber Insurance Checklist
Nothing makes a complex task easier than creating a checklist. Here’s what you need to help you get started on securing cyber insurance:
1. Identify Applicable Laws and Regulations
Certain regulations require very specific protocols. For instance, the California Consumer Protection Act (CCPA) requires businesses to be able to quickly access and delete data upon request. Before you can secure your company with cyber insurance, you must understand what regulations apply to your business.
You can also look into consulting a lawyer, data privacy specialist, or IT provider to help you understand the laws that apply to your industry.
2. Create a Protocol for How You Handle Data
Develop a process on how to enter, store, and retrieve data securely. A process like this helps you ensure that your data is compliant with all regulations. This way, everyone is on the same page and understands their role in protecting data.
3. Invest in Security Protocols
Data security protocols protect your data from external threats and hackers. Some examples of security controls include firewalls, encryption, multi-factor authentication, secure passwords, and data backup and recovery systems.
4. Follow Microsoft Secure Score Guidelines
Microsoft has created the Microsoft Secure Score that serves as “a measurement of an organization’s security posture.” It also provides recommendations on what organizations should do to improve their security score.
Many cyber insurance companies are now using Microsoft Secure Score as the benchmark for determining coverage eligibility. Therefore, following Microsoft’s guidelines is a surefire way to make sure you’re covered.
5. Limit User Access
Limiting user access of sensitive data can help protect your customers’ information and keep you compliant. Create roles and permissions for employees to limit the amount of information they can access, as well as how they are able to use that data.
6. Partner with an IT Professional or Cybersecurity Firm
To build up a security strategy effectively, it’s important to work with an IT professional or cybersecurity firm that understands the complexities of data privacy, security, and is up-to-date on the latest industry trends. Regulations are constantly changing and by having an experienced professional’s help, you can catch any new updates quickly.
You Don’t Have to Do It Alone—Partner with Praxis
At Praxis, we’d be more than happy to help you get on the path of qualifying for cyber insurance. Our team is made up of experts who understand the complexities of data privacy and security. We’ll provide you with a comprehensive solution for protecting your company’s sensitive information such as:
- Customized assessments of your current data security practices
- Technology solutions to help you update your compliance checklist strategy
- Ongoing monitoring and maintenance of data security protocols
Whether you need assistance getting started or just want to enhance the steps you’ve already taken, we can help make sure you’re ready for cyber insurance. Secure your business and get the cyber coverage you need by contacting us today.