Cyber Insurance Checklist 2024 - Things to Keep in Mind

Posted on: Apr 19, 2024 | 3 mins | Written by: HDFC ERGO Team

Cyber Insurance Checklist 2024 - Things to Keep in Mind

Cyber insurance protects us against financial damages caused by cyberattacks, data breaches, and other digital risks. It includes expenses for investigation, recovery, and legal fees, as well as potential liabilities and damages. Additionally, it may provide access to expert advice and tools to help prevent future accidents. Cyber insurance assists businesses in mitigating financial risks and managing the intricacies of cyber-attacks in an increasingly digital world.

Considering these ambiguous obstacles, insurance companies have hiked their cyber insurance premiums. Further, they also insist on checking if a company’s cyberspace is protected and equipped to deal with cyber threats before agreeing to partner with them. Fear not, here is a quick checklist to keep in mind before purchasing cyber insurance for professional purposes.

Cyber insurance coverage checklist

1. Know your business's cyber risk level

Your cyber risk assessment for cyber insurance should include defining the sorts of data that your company collects and retains, as well as outlining any potential cyber risks.

2. Understand your regulatory obligations

Businesses are responsible for safeguarding sensitive personal information such as credit card details, home addresses, phone numbers, and health care records. Businesses that do not comply with these standards may be denied cyber insurance coverage or have their policy worthless in the event of a cyberattack. If you are unsure whether your company complies with federal or state privacy rules, consult with an IT consultant.

3. Multi-factor authentication

Malware and other threats commonly use weak or stolen passwords to infiltrate networks. A multi-factor authentication decreases the risk by requiring a mix of verification elements, including a password or PIN, as well as a security token, mobile app, or biometric identity. It is practically impossible to obtain cyber insurance for professional purposes without multi-factor authentications.

4. Ensure secure backups

Many ransomware assaults now target backup files, preventing recovery. Immutable backups, which cannot be encrypted, destroyed, or otherwise manipulated, ensure that your data is always recoverable. To increase security, the immutable backup should be isolated from local systems.

5. Determine your budget

When creating a budget for cyber insurance coverage, consider both short-term and long-term costs. This covers expenses for an incident response team, reputation repair and recovery, crisis management, and data restoration projects. The easiest way to estimate your company's cyber insurance coverage budget is to consult with your finance department and a reputable cyber insurance broker.

6. Secure remote access

The Remote Desktop Protocol (RPD) allows customers to access workplace resources from their home computers via an Internet connection, although it has recognised flaws. Use encryption, multi-factor authentication, and other security features to reduce risk. Block all remote access ports at the firewall or network gateway unless there is a valid business purpose to keep them open.

7. Cybersecurity training

Cybersecurity training should be an essential component of any organisation that aspires to succeed in the digital age. It is vital to ensure that all staff are on the same page about security. Furthermore, it is critical to equip the team with clear instructions on what security hazards to look out for and how to respond in an emergency. A security-minded workforce will not only reduce the cost of a cyber insurance policy but will also strengthen your organisation's defences against cybercrime.

8. External audits

Cyberattacks can be conducted indirectly. Such attacks are sometimes referred to as supply chain attacks, and they have become increasingly prevalent in recent years. Thus, having a thorough awareness of your partner's security procedures can considerably benefit your company's total security infrastructure. When you enter into a collaboration with a third party or install new software for company-wide usage, you should find out as much as you can about the other party's security policies. This ensures positive feedback when negotiating for cyber insurance.

Conclusion

In conclusion, cyber insurance serves as an important precaution against the financial consequences of cyber attacks in today's digital landscape. As insurers raise premiums and scrutinise cyber defences, firms must proactively identify risks, strengthen security measures, and maintain regulatory compliance. Embracing multi-factor authentication, robust backup strategies, and continuing cybersecurity training increases organisational resilience. Businesses may easily navigate the shifting cyber insurance landscape by adhering to best practices and conducting frequent evaluations, protecting their operations and assets from the ever-present threat of cybercrime.

Disclaimer The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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