6 Critical Reasons Why You Should Invest in Cybersecurity Insurance
What is Cybersecurity Insurance?
Cybersecurity insurance is a policy you can purchase that covers your organisation’s financial liability should you experience a data breach or cyberattack that involves sensitive customer data. Having adequate cyber insurance in place will ensure you have crucial support available to help save your organisation time and money along with your reputation.
Did You Know?
|55% of small organisations have experienced a data breach||1 in 3 small and medium enterprises (SMEs) have no cyber insurance cover2||
99% of all cybersecurity insurance claims come from small and medium organisations
Why is Cybersecurity Insurance Important?
Small and medium organisations are more vulnerable to cybercrime than you might think, with 58% admitting that they had recently been a victim of a cyberattack. Cybercriminals target SMEs because many lack the investment required to fully protect their data and networks compared to larger organisations. This means if a data breach happens, caused by a cyberattack, insider threat or a physical attack, many have limited resources enabling them to manage the incident effectively.
The costs associated with a data breach is relevant to the size and complexity of an organisation’s IT systems and the sensitivity of their data. If a data incident happened to a small organisation the minimum cost for ‘Incident Response’ could run into tens of thousands of pounds. On top of this you could also be expected to pay additional legal costs and fines from the Information Commissioner’s Office (ICO).
Having cyber insurance in place for your organisation means that if the worst should happen you will have access to the critical support required to help you stay afloat. This can include:
|Incident response - containment, forensics, and clean-up||Business Interruption||Legal and compensation claims|
|Meeting ransomware demands||Informing clients of data breach and public relations (PR) advice||Data recovery|
Who Needs Cybersecurity Insurance?
All organisations that store and process personal data such as names, email addresses, mailing addresses, passwords, and credit card details should invest in cyber insurance. Sectors that could benefit from cover include:
|- Accountants||- Consultants|
|- Contractors||- Hair Salons|
|- IT Service Providers||- Marketing and Design Agencies|
|- Estate Agents||- Restaurants|
|- Retailers||- Schools|
What Does Cybersecurity Insurance Cover and What Does it Cost?
Although the average cost of a cyberattack for an SME is around £15,000, the additional cost to contain, identify the cause and clean-up after an attack can soon escalate. Cyber coverage ensures your organisation is covered for the financial costs of investigating the attack, recovering data, restoring systems, loss of income, PR, ransom payments and notifying third parties of the breach. It can also provide protection when a customer or supplier makes a legal claim against you. This can include damages, settlements, and the cost of legally defending your organisation.
There is no ‘one-size-fits-all’ policy when it comes to cyber insurance, the level of coverage and cost will depend on several factors. These can include, your industry type, annual revenue, type of data stored, the level of your network security, and if you have completed a Cyber Essentials certification.
What are the Requirements to Obtain Cybersecurity Insurance?
Below is an example of the core network security requirements your organisation may need to fulfil so you can obtain cyber insurance. These examples should only be used as a guide, you should always check the provider’s specific conditions when purchasing cover.
Critical data is regularly backed up to an offline location that would remain unaffected by an issue with your live environment. These backups should be tested at regular intervals to ensure they are recoverable. Find out more >>
Multi-Factor Authentication (MFA)
MFA is implemented for all cloud-based services and for remote access to your organisation’s network and data. Find out more >>
Virtual Private Network (VPN)
Remote access to your network is only allowed using a VPN. Find out more >>
Cybersecurity Awareness Training
All users who have access to your network regularly should take part in cybersecurity awareness training that includes anti-phishing simulations. Find out more >>
System and Patch Updates
Critical patches and system updates are implemented when required, while unsupported or end-of-life software is not in use. Find out more >>
Scanning for Malicious Emails
Incoming email is scanned for malicious links and attachments. Find out more >>
Devices are Secured with Advanced Security Software
All devices are secured with anti-virus, anti-malware, and endpoint protection software. Find out more >>
Don’t be Reckless When it Comes to Securing Your Organisation’s Cyber Resilience
NCI Technologies is a leading provider of cybersecurity solutions for businesses and schools serving Cornwall, Devon and the South West.
Our experts can advise on the implementation of IT security solutions that give your organisation access to insurance cover that achieves cyber resilience against the financial costs of cyberattacks.