Cyber
insurance is an invaluable tool in your risk management arsenal. Think of it as
one of the many weapons you have against cyberthreats. However, there's a
widespread misconception that having cyber insurance is enough. The truth
is—without a comprehensive cybersecurity strategy, your insurance can offer
only limited protection.
Through
this blog, we'll help you understand why cyber insurance should be seen as a
safety net rather than a replacement for strong security.
Understanding the limits of cyber insurance
In
today's business landscape, cyber insurance is a must. However, having
insurance doesn't guarantee a payout. Here are a few things that cyber
insurance can't help you with:
Business interruption: Your cyber insurance policy can never fully cover
the cost of lost productivity due to a cyberattack. The payouts, in most cases,
would be partial and won't be enough for you to recover from the business
interruption.
Reputational damage: Cyber insurance can't help you win back customer
trust. It would take a lot of work to repair your organization's reputation.
Evolving threats: Cyberthreats are constantly evolving, and your insurance policy might
not be able to offer a payout against new tactics.
Social engineering attacks: Cybercriminals often trick unsuspecting victims
through social engineering attacks. If your business suffers losses due to a
social engineering attack, like a phishing scam, you might not be covered.
Insider threats: Losses resulting from an internal risk are rarely covered by insurance
providers. If the breach occurs because of a threat within your organization,
your policy provider may not entertain the claim.
Nation-state attacks: Some rogue state nations deploy their hackers to
carry out cyberattacks in other countries. Many insurance providers consider
such attacks as acts of war and do not cover them.
Six steps to build a strong cybersecurity
posture
Implement these steps proactively to strengthen your
defenses:
• Employee training is critical for building a
strong defense against cyberthreats. Hold regular sessions and bootcamps to educate
your team on cybersecurity best practices.
• Implement strong password policies. Using multi-factor
authentication will phenomenally improve your internal security.
• Regularly back up your business-critical
data. This will ensure you can bounce back quickly in case of a breach or a
ransomware attack.
• Keep your software and security solutions up
to date. Monitor and resolve issues before hackers have an opportunity to
exploit them.
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Think of your network like your castle and do
everything to protect it from hackers. Build a strong network security
infrastructure, complete with firewalls, anti-virus software and threat
detection systems.
Build a Resilient Future For Your Business
To build a strong defense posture, you need a good cyber
insurance policy and a robust cybersecurity plan. However, it can be stressful
having to juggle the responsibilities of managing your business and
implementing a comprehensive security strategy. That's where a great partner
like us can offer a helping hand. We can evaluate your current IT
infrastructure and create a strategy that is right for you. Reach out to us
today to get started.