With the rising sophistication of cyber threats, it has become increasingly important for businesses to safeguard their digital infrastructure. One effective risk management strategy is cyber liability insurance, which provides coverage against the financial implications of data breaches and other cyber threats. However, the rates for this insurance can be high due to the prevalent risk. Here are eight proactive strategies that can help you significantly reduce your cyber liability insurance rates.
- Enable Multi-Factor Authentication (MFA):
MFA adds an extra layer of security by requiring additional verification steps before granting access to sensitive information. This could be through fingerprint scans, text message confirmations, or unique codes generated by an authenticator app. By implementing MFA, you drastically reduce the risk of unauthorized access, making you a less risky client for insurers.
- Have an Incident Response Plan:
An Incident Response Plan (IRP) outlines the procedures to follow in case of a security breach. It helps to contain and mitigate the threat quickly and demonstrates to the insurer that you have proactive measures in place to manage potential cyber incidents.
- Put a Backup Plan in Place:
Regularly backing up your data and systems can help ensure business continuity in case of a ransomware attack or data loss. A robust backup strategy, including offsite and cloud backups, can reassure insurers of your business’s resilience, thus potentially lowering your premium.
- Remove Outdated Software:
Legacy software often has known security vulnerabilities that cybercriminals can exploit. Regularly updating your software and promptly decommissioning unused or obsolete systems can decrease your cyber risk exposure and make your company more appealing to insurers.
- Have an Endpoint Detection & Response (EDR) Solution:
EDR solutions continuously monitor and respond to cyber threats on your network’s endpoints. They provide real-time threat intelligence, which can prevent or minimize damage from a cyber-attack. Insurers often look favorably on businesses that have such proactive security measures in place.
- Enable Logging for all Systems, Software, and Perimeter Devices:
Comprehensive logging provides a traceable record of activities within your systems. This allows for swift detection and understanding of a cyber attack’s origin and impact. It also demonstrates your company’s commitment to transparency and accountability, which can influence your insurance rates positively.
- Train Your Employees to Be Cyber-aware:
Human error is often the weakest link in cybersecurity. Regular training sessions on phishing, safe internet practices, and data protection can drastically reduce the risk of an inadvertent data breach. A well-informed workforce is an invaluable asset that insurers will certainly consider.
- Create a Password Policy:
Implementing a firm password policy, including regular password changes and complex password combinations, can deter unauthorized access attempts. A sound password policy is a straightforward yet effective way to reduce cyber risk.
Enhancing Cybersecurity for Your Business with Premier Risk, LLC.
At Premier Risk, we understand that effective cyber risk management is a holistic process that involves robust technology and educated personnel. Let us help you implement these strategies to protect your business and lower your cyber liability insurance costs. Contact us today for a consultation. You can also call us directly at 516-599-8484.