Over the past couple of years, cyber insurance requirements
have changed dramatically, and a lot of businesses in Houston are scrambling to
figure out what they need.
As it turns out, ransomware attacks and data breaches have
skyrocketed. This means cyber insurance companies
are likely paying millions of claims. To mitigate the
issue, they are making sure businesses have more than just basic cybersecurity
in place to meet their requirements.
Why Cyber Insurance Requirements Change
Insurance companies are doing actual security
assessments. They're asking detailed questions about your IT
infrastructure, and they're declining coverage or charging
significantly higher premiums if you don't meet their requirements.
The reason is simple: ransomware became an
epidemic. We've seen attacks on businesses of all sizes across Houston.
What Many Insurers Require
Requirements vary by insurer, but many of them require the
following:
- Multi-Factor
Authentication (MFA): Almost
every insurer requires MFA on all remote access and
administrative accounts. That means you need something beyond just a
password, such as a code from your phone.
- Regular
Backups: Insurers want to know you can recover your data if you get hit
with ransomware. So, now they require tested backups that are
kept offline or in immutable storage.
- Email
Security: Since most ransomware gets in through phishing
emails, having advanced email filtering is non-negotiable for
most insurers.
- Endpoint
Protection: Your business needs more than free antivirus, such
as endpoint detection on all computers.
- Security
Awareness Training: Most insurers want to see documentation of
regular training for employees on how to spot phishing attempts and other
threats.
- Patch
Management: Attackers love exploiting known vulnerabilities, so
keeping systems updated with security patches is required.
- Incident
Response Plan: You must have a documented plan for what to do if
you get hit with a cyberattack. Who do you call? How do
you contain the damage? How do you notify affected
parties?
What Happens If You Don't Meet Requirements
Pay significantly higher premiums. Insurers will
cover you, but you'll be paying more for your premiums each
month for being considered "high risk."
Accept major coverage limitations. Limitations on
coverage means you will still have cyber insurance, but there are big
exceptions to it, such as lower coverage limits, higher deductibles, and
exclusions for certain types of attacks.
Be declined coverage. Some insurers are just
walking away from businesses that don't meet basic
requirements. They've decided it's not worth the
risk.
How to Meet Cyber Insurance Requirements
The best way to ensure you meet the basic requirements is to
work with a professional managed IT provider. They should understand exactly
what your insurance policy requires and can set it up for
you.
Start with an assessment.Get a security assessment to see what you
already have in place, what's missing, and document it properly. Most
businesses are further along than they think.
Prioritize MFA and backups. These are the two
non-negotiables for almost every insurer.
Document everything. Insurers want proof. Keep
records of security training, backup tests, and patch schedules. Documentation
is key.
Test regularly. Having a backup system
that doesn't work is worse than not having one at all. Test your
backups. Test your incident response plan.
PC.Solutions.Net Approach to Cyber Insurance Requirements
There's no way around it: meeting insurance
requirements costs money. But we know that budgets can be tight when it comes
to running a business. PC.Solutions.Net offers cybersecurity options that fit
your needs, so you aren't paying for tools and services
you don't need.
A cyberattack can cost you more in the end than
you might think. So, with the rise of ransomware, phishing attempts, and data
breaches, make sure you pick the right protection for your
business.
What you need to know about cyber insurance
Cyber insurance requirements aren't going away. If
anything, they're getting stricter. The businesses that treat this as
an opportunity to improve their security are the
ones that'll remain protected.
If you're dealing with cyber insurance
requirements and are not sure where you stand, we can help.
Click Here or give us a call at 281-402-2620 to Book a FREE 15-Minute Discovery Call
