In today’s digital age, the threat of cyberattacks looms larger than ever, and businesses are increasingly becoming targets of sophisticated cybercriminals. In this landscape, safeguarding your company against potential risks is paramount.
One crucial aspect of this protection strategy is investing in comprehensive cyber insurance. But simply having cyber insurance isn’t enough; it’s equally essential to ensure that you meet the stringent requirements set by insurers to secure favorable terms.
One way to achieve this is by employing an all-encompassing IT security solution like 365 Total Protection. In this article, we’ll explore the reasons why your company should consider cyber insurance and how 365 Total Protection can help you obtain favorable terms on your policy.
The Rising Cyber Threat Landscape
Cyberattacks have surged in frequency and sophistication over recent years. Hackers are targeting businesses of all sizes, seeking to exploit vulnerabilities in digital infrastructure, steal sensitive data, disrupt operations, and cause financial and reputational damage.
As a result, companies are exposed to a growing array of risks, including data breaches, financial loss, legal liability, and reputational damage.
According to the Hiscox Cyber Readiness Report 2023, the median cost of a cyber-attack has reached in Germany 16.000 Euro, down 32.4% from 2021. Although this is a welcome development for Germany, the average cost of a cyber-attack to a company is still considerable. And who can guarantee that it will be just one attack?
For other countries in the Western Hemisphere, things don’t look quite so favorable. In the UK, the average cost of a cyberattack was 24,200 euros in 2023, and 20,000 euros in the US.
The Importance of Cyber Insurance
To mitigate these risks effectively, businesses should consider investing in cyber insurance. A robust cyber insurance policy can offer comprehensive protection against the financial and legal ramifications of a cyberattack. Here’s why purchasing cyber insurance is a wise decision:
- Coverage for Incurred Damages: Cyber insurance typically covers the costs associated with defending against a cyberattack, restoring data and systems, and mitigating the impact of the attack on your business.
- Liability Protection: In the event of a data breach or cyber incident, your company may be liable to customers, suppliers, and partners due to data protection law violations. Cyber insurance can help cover the costs associated with legal liability and compensation.
- Business Interruption Support: Cyber insurance may provide financial compensation in case of a business interruption resulting from a cyberattack, helping your business maintain stability during challenging times.
- Assistance Services: A good cyber insurance policy includes assistance services such as IT security experts, crisis PR specialists, and data protection lawyers. These professionals act as an outsourced cyber crisis department to help you navigate the aftermath of an attack effectively.
- Data Protection: Cyber insurance can also offer protection for both physical and electronic data, including laptops, smartphones, and paper files. If data is lost, compromised, or misused, your policy can provide coverage.
The Challenges of Cyber Insurance
However, there’s a catch. As the frequency and severity of cyberattacks continue to rise, insurers are adapting to the changing landscape. They are striving to make their cyber insurance products profitable again. This translates to increasing deductibles, higher premiums, and more stringent minimum IT security requirements for policyholders.
According to the World Economic Forum, cyber insurance premiums have increased globally by an average of 20% per year over the past five years. For small and medium-sized businesses, these rising premiums and stricter security requirements can become a substantial financial burden.
How 365 Total Protection Can Help
This is where 365 Total Protection comes into play. 365 Total Protection is a comprehensive IT security solution that offers a multitude of benefits, including:
Email Security: Protect your business from email-based cyber threats, including phishing, malware, and spam. 365 Total Protection ensures that your communication remains secure; and thanks to a self-learning AI-based service, it ensures that email recipients are validated so that even outgoing emails don’t fall into the wrong hands.
Backup & Recovery: In the unfortunate event of a cyberattack, 365 Total Protection provides a robust backup and recovery system, ensuring that your data is safe and can be quickly restored.
Compliance for Permission Management: 365 Total Protection helps your organization comply with data protection laws, ensures that you effectively protect sensitive data in Microsoft 365 thanks to clear permissions management, and reduces the risk of data loss and legal liability.
Security Awareness Training & Phishing Attack Simulation: Educate your employees about the importance of cybersecurity. Well-informed staff can be your first line of defense against cyber threats.
With the Security Awareness Service included in 365 Total Protection, you can train your employees at the touch of a button to recognize and report even advanced spear phishing attacks and learn safe behaviors to build a sustainable security culture. The Security Awareness Service runs continuously and fully automatically.
It includes advanced spear phishing simulation to continuously measure the security behavior of all employees, and then automatically manages the right level of training for each employee.
By implementing 365 Total Protection, your company can substantially enhance its cybersecurity posture, which, in turn, can lead to more favorable terms when purchasing cyber insurance. When insurers see that your organization has taken significant proactive measures to protect against cyber threats, they may be more inclined to offer competitive rates.
In an era when cyberattacks are becoming increasingly prevalent and severe, cyber insurance is an essential component of your business risk and continuity management strategy. To secure favorable terms on your cyber insurance policy, invest in an all-encompassing IT security solution like 365 Total Protection.
By taking proactive steps to protect your digital infrastructure and educate your employees, you can demonstrate to insurers that your company is a responsible and secure entity, potentially leading to more cost-effective coverage.
Don’t wait until it’s too late – protect your business today with a combination of robust cyber insurance and 365 Total Protection’s comprehensive IT security offerings.
Learn more about 365 Total Protection and request a free trial: https://www.hornetsecurity.com/us/services/365-total-protection-compliance-and-awareness/
What are the benefits of having cyber insurance?
Cyber insurance can help businesses to:
- Recover from a cyberattack more quickly and efficiently
- Protect their reputation
- Avoid financial losses
- Comply with regulatory requirements
How much does cyber insurance cost?
The cost of cyber insurance varies depending on the size of the business, the industry it is in, and the level of coverage it needs. Other factors included in the insurance premium are:
- Risk assessment and deductibles
- Type of information and data a company stores and processes
- The type and quality of security measures implemented, such as security awareness training for employees
- The company’s cyber history
- Any global presence the company may have. Companies with a global presence typically pay higher premiums for cyber insurance because they are exposed to a broader range of risks.
What can businesses do to lower their cyber insurance costs?
Businesses can lower their cyber insurance costs by:
- Implementing strong cybersecurity controls
- Conducting regular risk assessments
- Training employees on cybersecurity best practices
- Having a comprehensive incident response plan in place