Cyber Insurance in 2023: The Newest Layer to Business Liability Coverage

Three years after the start of the COVID-19 Pandemic, many things have become increasingly common in the workplace:

1. Employees are demanding the ability to work their way (hybrid, remotely, in office, etc.)
2. Employers are having to create a flexible working environment.
3. Threat Actors are utilizing these transitions to attack organizations.

While the threat of data breaches, ransomware, malware, and phishing attempts are not new, they have consistently been on the rise for the past five years.

The most vulnerable and targeted areas are small to medium-size businesses. Even worse, these sectors are seeing the most malicious attacks involving ransomware which can bankrupt an uninsured small business.

More and more, the insurance industry is requiring their small business clients to purchase Cyber Insurance. Commercial General Liability coverage is key to risk management for an organization. However, this does not insure an organization from damages caused by breaches and hacks. The momentum being built towards Cyber Insurance will only increase over the course of 2023. While the importance of Cyber Insurance is present, there is an overall lack of industry standardization when it comes to the requirements and guidelines surrounding Cyber Insurance.

Without a standardized approach to Cyber Insurance and slow moving Federal Legislation, the requirements to achieve Cyber Insurance may vary by provider. Because of the varying requirements, small businesses may not know where to start when it comes to their cyber security needs. Threat actors tend to move much faster than the industries they are targeting and are usually a few steps ahead of an organization’s cyber security efforts – especially ones without a dedicated information technology person or team. 

In order to determine your premium, coverage limits, and whether you even qualify for Cyber Insurance in the first place, most providers will carry out a cyber insurance risk assessment as part of their underwriting process. Depending on the size of your organization, this process can range from a questionnaire to a detailed analysis carried out over multiple weeks by a cyber security firm. Regular check-ups and reassessments are also possible and becoming more necessary, as insurers want to validate that the cyber security measures taken by their clients are continuing to be implemented.

Ultimately, what most insurers require at a minimum are:

• Antivirus software installed and updated on all company computers.
• An up-to-date firewall in place on the organization’s network.
• Data backed up by a third party tool or external media.
• User access rights defined in company documentation and policies.
• Administrator accounts must utilize Multi-Factor Authentication.

Most of this list seems straightforward; but not every business has the full capabilities to implement each step. This does not guarantee that an insurer won’t ask for more requirements to be met, and with continual reassessments and check-ups, ensuring that every system is up-to-date and functioning can take a lot of management.

How will your company meet insurer requirements, enhance overall security, and continually manage those implementations? One of the best ways to do all of the aforementioned is to partner with a Managed Service Provider.

Zirous’ Cloud Managed Services aims to enhance overall security for small and medium sized businesses, achieve Cyber Insurance requirements, and develop a long-term strategic partnership to enable business growth and prosperity.

Alongside the increased security for your business, Zirous Managed Services will enhance your organization’s IT productivity, streamline policies and procedures, and minimize downtime due to IT issues.

Interested to learn more about how we implement industry leading tools and technology to our clients? Click on the button below to start the conversation around protecting and insuring your organization!