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Cyber Insurance is Becoming More Strict. Is Your Business Covered?

by | Oct 10, 2022 | Compliance, Managed Services, Security

Cyber insurance and security is a concern for companies of all sizes. It’s particularly significant for smaller businesses who are less likely to have the dedicated technical staff in place, however.

Insurers continue to raise the bar for the requirements of their cyber insurance policies. That’s why it makes sense for these businesses to work with Managed Service Providers (MSPs) to help bolster their security posture.

We have been witnessing an avalanche of interest in cyber liability insurance over the last few years. And that interest shows no signs of abating.

In fact, a recent report by Howden Insurance Brokers states that the number of brokers reporting rising demand for cyber liability insurance coverage has risen by 89%. They go on to say the number of brokers reporting an increase in claims has risen by 72%.

It will be unsurprising that because of this demand, insurers are particularly careful how they build their policies to minimize their risk from large cyber events. This is especially true if the company looking for cover hasn’t taken adequate enough steps to minimize cyber risks itself.

There are several approaches firms can take to increase their chances of obtaining a policy. But what about the firms that sit firmly on the smaller side of the spectrum?

 

Small business cyber insurance: Is it really needed?

There may be a perception that smaller firms are less likely to be targets for bad actors, slipping under the net while they focus on frying bigger fish. In my previous post, we covered how this simply isn’t true. According to Security Magazine, 43% of all cyberattacks target small businesses, and 60% of all small business victims of a data breach permanently close their doors within six months of the attack.

In reality, most medium-to-large organizations will survive a significant cyber attack; they’ll be damaged but they’ll get through it. Unfortunately, at the lower end of the market it really is an existential threat and that’s just not how it should be — small business owners should be free to build their business and not have to worry about cyber risk.

Fortunately, cyber insurers have a great deal to offer to help small businesses — cyber advice to help you understand what you need and technical/ financial assistance should the worst happen.

The one thing they don’t provide is the technical support to take those few critical steps that will best protect your small business, and that’s where Managed Service Providers add such value. They have the specific technical knowledge to deploy and manage the type of cyber security solution required to meet the minimum demands of your insurance policy.

So how do these smaller companies with around 20-50 full time employees, ensure a strong cybersecurity posture? Especially when they have to wear a multitude of other hats to ensure the smooth running of the day-to-day business?

A rapidly growing answer to that is to leverage a Managed Service Provider to help them back up their data, deploy endpoint protection and ensure their employees have trusted access to the work they do. This last step is where we’re seeing a huge amount of interest from insurers and small businesses as they seek an easy way to mitigate their joint risk without breaking their backs.

How does Hermetic Networks approach the problem?

As well as helping you attain the minimum level of posture to secure a cyber liability insurance policy, we take security a step further.

Our security approach is multi-layered to address risks at all levels of the organization, no matter how large or small. We ensure all systems are up to date and healthy – not just the workstations. That includes firewalls, switches, hypervisors, and special use-case network devices like Network Video Recorders. Any network-connected device can be a foothold for breach. We ensure they’re all protected.

We monitor and protect privileged access accounts 24/7 to ensure administrator access is tightly restricted. Additionally, users themselves are provided the tools they need to succeed with two-factor authentication at every level, including VPN, RDP, critical applications, websites, and more.

Our customers receive password managers, online cyber security training, phishing assessments, continuous vulnerability scans, and quarterly business reviews to ensure we’re hitting the mark.

So whether you are a small business looking to get essential cyber liability insurance coverage, or you are interested in improving your organizations security posture, get in touch today.