As cyberattacks become increasingly common and complex, the associated rate of financial loss has risen proportionally. No matter the size, any organization with a digital footprint is at risk of experiencing a cyber incident; this includes large corporations, educational institutions, and small family-run businesses. Establishing a secure and robust cybersecurity program is one of the best ways to reduce your cyber liability insurance premiums.
By integrating certain strategies, your cybersecurity program can demonstrate the information security posture that cyber insurers look for when evaluating a company’s risk profile. With a few simple changes, you could easily lower the financial cost of protecting your organization’s private data. Here are 5 strategies that can help you reduce your cyber insurance premiums:
1. Staff Cybersecurity Awareness Training
At the center of most successful ransomware cyberattacks lies a human user who has either clicked a malware link, visited a malicious website, or disclosed sensitive information that they should not have.
One of the main reasons this occurs so frequently is because most people lack the knowledge and skills needed to recognize and respond to a cyberattack. This is where cybersecurity awareness training comes in. By requiring periodic training and simulated phishing exercises, organizations can keep their staff informed and prepared to handle the most common cyber threats.
Cyber insurers are well aware that most organizations are staffed with people who could easily be swindled by hackers. As such, providing evidence that you’ve implemented a cybersecurity awareness training policy for your company is sure to improve their perception of your risk level.
2. Strengthen Your Security with Multi-Factor Authentication (MFA)
Most cyber insurance providers have recently required their clients to utilize Multi-Factor Authentication (MFA) for two primary reasons: the fact that most cyberattacks begin with an attempt to compromise user credentials, and that cybercriminals often rely on stolen user credentials to gain access to private networks.
MFA is a method of improving digital security which requires users to prove their identity multiple times before they can access a network, account, or application. This could involve needing to confirm a login attempt on a separate device, geolocation, or verifying your identity through biometric data, such as a fingerprint or facial scan. Adding this additional step greatly increases the level of security far beyond that of using a single password, as it is much harder to hack and can’t simply be guessed.
3. Protect Your Data: Have a Safe and Secure Data Backup in Place
With the increasing sophistication and frequency of cyberattacks, no cybersecurity plan can guarantee 100% protection. Before offering their services, cyber insurance providers will want to verify that you have a secure backup system in place. The two most important features of a backup system are:
Regular Verified Backups
Organizations should perform regular verified backups for their sensitive data and critical applications. This ensures that management can quickly recover lost data and resume business operations with minimal disruption in the event of a cyber breach. It’s important to note that not all backups are created equal. A verified backup means that the data is tested to ensure there are no corrupted files or errors, indicating that it is accurate and usable.
Air-gap backups are an ideal way of preventing the disastrous outcomes of data loss. Setting one up involves creating an offline copy of an organization’s data which is then stored in a safe, off-site area, such as a secure server facility. This type of backup can be extremely beneficial during natural disasters, such as floods or fires. They are also useful to have in case of technical issues, hardware malfunctions, or malicious ransomware attacks. In reality, air-gap backups are an invaluable safety measure that can help companies avoid costly and reputation-damaging data breaches.
4. Be Consistent and Have Regularly Scheduled Vulnerability Assessments and Penetration Testing
Getting a Vulnerability assessment is crucial because it helps organizations identify weaknesses and vulnerabilities in their systems, networks, and applications before they can be exploited by attackers. By conducting regular vulnerability assessments, organizations can proactively identify and prioritize vulnerabilities that need to be addressed, reducing the risk of a cyber breach.
Penetration testing is a critical tool for identifying potential security vulnerabilities and weaknesses in an organization’s systems and infrastructure. By simulating a real-world attack, security professionals can assess an organization’s security posture and determine where improvements need to be made to better protect against cyber threats. Aside from using penetration testing to identify vulnerabilities, it can also serve as a powerful tool for demonstrating to cyber insurers the strength and effectiveness of an organization’s security policies, regulatory compliance efforts, and employees’ security awareness.
5. Have a Well Documented & Effective Incident Response Plan
One critical requirement on the cyber insurance checklist is having an Incident Response Plan (IRP). While it is true that no cybersecurity program can offer an ironclad guarantee against the occurrence of a cyberattack, it is equally true that a well-documented cyber incident response plan can go a long way in minimizing the impact of any breach that may occur. Establishing a detailed course of action helps your IT Team and staff understand how to identify, contain, mitigate, and recover from a potential cyber breach quickly and effectively.
Providing your incident response plan to cyber insurance providers will demonstrate your organization’s dedication to protecting valuable information. It’s important to remember, however, that having an IRP document is only half the solution. Your team needs to exercise and test the plan periodically to ensure it captures any changes to the infrastructure and remains executable and efficient in times of need.
Get Help Lowering your Cyber Insurance Premiums from D2 Cybersecurity
If you’re looking to reduce your cyber liability insurance premiums and protect your business from potential cyber threats, D2 Cybersecurity is here to help! Our team can assist you in implementing a secure and robust cybersecurity program, as well as integrating effective strategies that demonstrate your commitment to information security. Contact us today to take the first steps toward finding more affordable cybersecurity insurance.