Cybersecurity Insurance: Undergoing a Risk Assessment

Cybersecurity Insurance: Undergoing a Risk Assessment

Every type of business, from global organizations to mom-and-pop shops, faces cyber risks. As technology becomes increasingly sophisticated and more complex, the threats that businesses face do too.

This is why every organization needs to be prepared with not only an effective cybersecurity plan to mitigate cyber risks but also cyber liability insurance, also known as cybersecurity insurance.

Whether it be lost income due to a cyber event, costs for recovering compromised and stolen data, costs for repairing and restoring damaged computer systems, or even costs associated with notifying customers who have been affected by a data breach, the possibilities of what cybersecurity insurance can cover may save you thousands or hundreds of thousands of dollars in the long run.

Before purchasing cyber coverage from an insurance company, you’ll need to undergo a risk assessment. While we don’t offer insurance coverage, we conduct a risk assessment to verify that your business is compliant and help you get underway with your cyber liability insurance.  

What exactly does the assessment process look like, though? Check out our expertstips on how to prepare your business to be approved for buying cybersecurity insurance.

Policies and procedures are being documented.

Cybersecurity policies set an organization’s standards of behavior for activities like the encryption of email attachments or restrictions on employees’ use of social media.

Cybersecurity procedures explain the rules for how all end-users access online applications and practice responsible security.

These policies and procedures must be openly documented and easily accessible for those working in and for your company. Employees should be aware of this information, have a firm grasp on it, and implement it in their day-to-day operations.

Cybersecurity training is in place.

Companies should also hold cybersecurity training every four to six months. Educating employees on common and not-so-common threats is crucial in combating malicious threats when they arise. 

Here at radius180, we offer a comprehensive, formal cybersecurity training program that goes over phishing attacks and related threats to get your employees prepared if a hack is attempted.

Are there cyber vulnerabilities?

During your cybersecurity insurance risk assessment, your organization will also undergo an inspection of your company’s cyber vulnerability. There are four main types of vulnerabilities that are assessed, including those in your network, operating systems, your operations processes, and any possible security intrusions that could stem from the people in your company.

Network vulnerabilities are issues with a networks hardware or software that expose it to potential security lapses. Tighten up your network by securing all Wi-Fi access points and properly configuring your firewall.

Operating system vulnerabilities come from access points within a certain operating system, making it easy for hackers to carry out attacks on the device the OS is installed on. Removing default superuser accounts and running frequent malware scans that can detect backdoor programs from compromising your computer are just two ways of many to secure your operating system.

Some vulnerabilities can be created by a lack of process controls. Verifying that employees create complex passwords, frequently change their passwords, never leave an unlocked device unattended, and avoid personal use of company technology are methods of preventing process vulnerabilities.

The weakest link for many cybersecurity frameworks is human error, often by accident. Human vulnerabilities can be prevented by reiterating the importance of never sharing your password or valuable information and updating software as often as possible.

Begin your risk assessment now.

Unclear on how to prepare for your cyber risk assessment? Give us a call at (856) 772-7100 or contact us online to begin your risk assessment and kickstart the process of keeping your company safe with cybersecurity insurance.

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