Cybersecurity insurance is a type of business cover organizations can purchase to help them recover from the financial damage associated with cyber-attacks. This type of cover has skyrocketed over the past few years, as organizations realize that cyber-attacks are now a case of when not if.
In line with this, the number of companies with cyber coverage increased from 26% in 2016 to almost 50% in 2020.
But, as the number of companies with coverage has increased, so too have insurance premiums. It’s not extremely expensive for organizations to procure cover and SMBs in particular are losing out.
However, this doesn’t mean that cybersecurity insurance is a no-go. With some strategic planning, you can still secure affordable insurance for your business, as we’ll explore below.
Cyber Insurance: A Look At The Market in 2022
2022 was a record-year for insurance premiums. Costs soared by over 100% in the first quarter of 2022. At the same time, we saw the number of organizations successfully applying for cover drop.
The reason for these soaring premiums is multi-faceted. Firstly, there’s the law of supply and demand. As more organizations seek cover, this demand is hiking up prices. Then, there’s the velocity and success rate of today’s cyber-attacks. Threats like ransomware, supply chain attacks and phishing are all extremely costly should they be successful.
Until recently, insurers included all of these attacks in their cover, meaning they were handing over lots of money to organizations that made claims. Essentially, this means insurers have been running at a loss. They’ve therefore switched things up to maintain profitability, making insurance more expensive and adding in more terms and conditions to fortify their business models.
How To Procure Cyber Insurance At The Right Price
So, cyber insurance prices are on the up, and you’re wondering how you can attain cover in 2023 without spending a fortune.
The good news is that it is possible with the right strategy. You see, insurers are placing more onus on their customers to be proactive about cybersecurity before offering them cover. If a business has low defenses, they’ll consider it high-risk and their insurance premiums will be super expensive.
On the other hand, if you have solid defenses in place, insurers will consider you low-risk of a successful cyber-attack, and you’ll pay much less.
With that in mind, here’s what you need to do.
Focus On The Security Basics
The security basics are there for a reason. Solutions like multi-factor authentication, anti-virus, anti-malware, firewalls, vulnerability scanning and employee training are critical to a solid cybersecurity posture.
Of course, many SMBs don’t have the internal expertise to implement and monitor these solutions. That’s where we come in. We can support you with our managed cybersecurity plan.
We deploy the most sophisticated tools that not only can identify “zero-day” threats, but also those that may have been lurking on your system for months, stealing data under the radar.
Monitor Risks 24/7, 365 Days A Year
Cyber-attackers are constantly on the lookout for ways to steal data and exploit businesses. To protect your company, you need to monitor for threats 24/7. This will also lower your insurance premium.
We can support you by ensuring your network and data are safe with multi-layered tools that work together to detect, defend, protect, and secure against cyber threats every hour of the day, seven days a week.
Focus On Continuous Improvement
Malicious actors are constantly reinventing and upgrading their tactics, creating threats that are sneakier and harder to detect. In the same way that cyber-attackers continuously evolve, your defenses need to. Again, working with a security provider like us means you’ll gain access to the latest and greatest security technologies, so you’re always one step ahead of the enemy.
Educate Your Employees on Phishing and Other Threats
A single phishing scam can take down an organization if your employee falls for it. While email security solutions can block most of these threats, one still may land in someone’s inbox.
When this happens, your approach to employee education will be the difference between a successful or thwarted attack. So, make sure to regularly train your employees on how to detect and report suspected phishing threats.
Better Defenses Lead to Better Insurance Premiums
Ultimately, achieving cyber insurance today is all about making your company a low-risk prospect to insurers. Don’t be a sitting duck to attackers and spend a fortune on your insurance premium. Instead, focus on proactively building your defenses, so you’re less likely to suffer an attack and more likely to achieve inexpensive insurance.
We Can Help You Lower Your Insurance Premiums And Bolster Your Defenses!
Contact us to get started with Managed Cybersecurity at your office and sleep easier knowing your business is protected. Call 208-468-4323 today.