Why is Multi-factor Authentication important? Multi-factor authentication can help your business protect important data. An increasing amount of data is now held digitally, which leaves both…
Obtaining the best Cyber Insurance terms within a hard market
5 ways clients can obtain the best Cyber Insurance terms within a hard market
Cyber insurance is becoming an increasingly important consideration for businesses of all sizes, as the frequency and severity of cyber-attacks continue to rise. As we are in the throes of a hard market, insurers have become more cautious about underwriting cyber insurance policies, as they try to minimise their exposure to risk. This can make it more challenging for many companies to secure coverage, but there are steps they can take to present a more favourable risk profile to insurers.
One of the most important things a client can do is to demonstrate their commitment to cybersecurity. This includes having robust security policies and procedures in place, as well as investing in cybersecurity technology and training for employees. A Cyber Essentials certification is an indicator that an organisation has taken steps to protect against some of the most common cyber threats.
Certification will not be seen as a guarantee that an organization will be immune to all cyber-attacks, however it does provide a good foundation for a comprehensive cybersecurity program. Insurers will want to see that a company has taken a proactive approach to managing cyber risks, rather than waiting for an incident to occur before taking action.
Working with an experienced IT service provider can assist in all areas of cybersecurity systems and provided tailored and comprehensive solutions. Businesses can also take steps to improve their cybersecurity by implementing secure password policies and Multi-factor Authentication.
2. Loss Experience
Another key consideration is the client’s past loss experience. If a company has a history of successful cyber-attacks, it will be more difficult for them to secure coverage in a hard market. On the other hand, if a client has a good track record of protecting their networks and systems, they will be seen as a lower risk.
Companies can also present a more favourable risk profile by being transparent with insurers about their current cyber risk exposures. This includes disclosing any known vulnerabilities or weaknesses in their systems and networks, as well as sharing information about past incidents and the steps they have taken to mitigate similar risks in the future.
4. Incident Response
It is also important to have an incident response plan in place, and to show the insurer that you have a plan and have tested it. This shows that you are prepared to respond to any cyber security incident in an organised and effective manner, reducing the financial impact of a loss.
An incident response plan can form part of a cyber security business continuity plan, which is highly recommended to minimise business disruption in the event of a cyber-attack. Find out more about cyber security business continuity planning here.
5. Working with an experienced broker
Finally, companies should work with an experienced broker who understands the cyber insurance market and can help them identify the most suitable coverage options and insurer to work with. A broker can also help clients present a more favourable risk profile to insurers by providing additional information and supporting documentation, such as security assessments and penetration testing reports. These can be provided for free, at quote stage, by some insurers.
In a hard market, insurers may be more selective in underwriting cyber insurance policies, but companies can take steps to present a more favourable risk profile to insurers. By demonstrating their commitment to cybersecurity, having a good loss experience and being transparent about current exposures, along with an incident response plan and working with experienced broker, clients can increase their chances of securing the coverage they need to protect their business from the ever-growing threat of cyber-attacks.
If you have any questions about cyber insurance, please get in touch with our team who will be happy to assist you.