Cyber Insurance Assessment: Protecting Your Business

Protecting your business from cyber threats is no longer a luxury, but a necessity. The average cost of a data breach is $3.86 million, according to the article.

To mitigate this risk, a cyber insurance assessment is a crucial step in understanding your business's vulnerabilities. This assessment helps identify potential areas of weakness, such as outdated software or lack of employee training.

Cyber insurance policies can cover a range of costs associated with a data breach, including notification and credit monitoring expenses. In some cases, policies can also provide coverage for regulatory fines and litigation costs.

A cyber insurance risk assessment is a must-have for any organization, especially in today's digital age where data is more at risk than ever before. The FBI's Internet Crime Complaint Center experienced a 69 percent increase in reports between 2019 and 2020.

The frequency and impact of cyber attacks have only grown over time, with the number of reported phishing attacks jumping by 48 percent in the first half of 2020 alone. The total amount of ransomware attacks rose by 41 percent in 2022.

Having a risk assessment will give you a clearer picture of all the ways your system might be vulnerable to security breaches. This information can be used to bolster your security strategies and lower your cyber risk.

The cost of a data breach is staggering, with the average healthcare data breach climbing to $10.1 million. A cyber insurance risk assessment can help you prepare for and mitigate the financial impact of a breach.

By taking proactive steps to ensure your security, you can confidently step into the digital age. A risk assessment is a valuable tool in this process, providing a deeper understanding of your risk and helping you to fortify exposed systems.

Christo IT takes the guesswork out of preparing for a cyber insurance policy with their comprehensive cyber insurance risk assessment. They understand navigating this process can feel daunting.

Their assessment involves an interview with your organization that includes 191 policy and procedures questions. This helps identify all the assets, such as servers, hardware, software, endpoints, and cloud-based systems.

The next step involves assigning each of these assets a value based on how your organization leverages them to weigh the role they play in your operations. Only then will they begin to evaluate the risk of each asset.

A vulnerability scan is one of the tools used to uncover security flaws in your software and network. It's a detailed inspection of your devices, communication equipment, networks, and infrastructure to find weaknesses in your IT security.

Here are some examples of vulnerability assessment tools:

After assessing the risk of your entire digital ecosystem, Christo IT will share the results, giving you detailed information regarding any vulnerabilities or areas of concern.

A cyber insurance risk assessment is beneficial for both you and your insurance carrier. It provides a deeper understanding of the risk they are underwriting and helps you identify vulnerabilities in your system that can be addressed.

The FBI's Internet Crime Complaint Center experienced a 69 percent increase in reports between 2019 and 2020, averaging 2,000 reports every day. This highlights the importance of having a risk assessment in place to protect your organization from cyber attacks.

A risk assessment can help you take action to eliminate risk, fortify exposed systems, and reduce the threat of hacks and breaches. This can also lower your cyber risk and potentially even secure a lower premium.

To prepare for your cyber insurance application, engage multiple teams including security, IT, compliance, and legal. Each team has a role to play in providing timely input.

Gathering relevant data points that prove your organization's commitment to sound cybersecurity is crucial. This can include data on your digital risk protection efforts, such as Bitsight Security Ratings, which provide an external, objective view of your network's cybersecurity posture.

Cyber insurance providers have a set list of requirements to ensure your operations are protected. These requirements strengthen your protection against cyber risk.

To get the best coverage, study your insurer's contractual wording to avoid any misunderstanding of what is covered and what's excluded. This is crucial to avoid financial losses in case of a cyber-attack.

AIG's CyberEdge risk management approach provides coverage for physical and non-physical losses resulting from a cyber event. This includes a standalone CyberEdge policy or endorsed onto select Financial Lines, Property, and Casualty policies.

Third-Party cyber liability coverage is essential, as it covers costs others incur due to a cyber breach. This includes:

Cyber insurance coverage includes a wide range of protection, such as legal counsel and guidance, defense in a lawsuit or regulatory investigation, and recovery of stolen data. It also covers reputational damage, breach confinement, notifying customers and clients, and recouping lost revenue resulting from business interruption.

Cyber insurance liability and protection are crucial components of any organization's cybersecurity strategy. In the event of a breach, having the right coverage can help mitigate the financial and reputational damage.

Data breaches are becoming increasingly common, with 236.1 million ransomware attacks in the first half of 2022 alone. This is why it's essential to have a cyber insurance policy that covers costs associated with data breaches, such as response and recovery efforts.

Cyber insurance policies can provide protection against various types of cyber threats, including data breaches, business interruption, and network extortion. For example, a first-party cyber liability coverage can pay for costs associated with managing a cyber incident, including forensics, customer notification, and public relations.

Some common types of cyber insurance coverage include:

It's also essential to consider third-party cyber liability coverage, which can protect your organization from liability arising from failing to maintain confidential information, network security, or internet media. This type of coverage can help mitigate the financial and reputational damage caused by a cyber breach.

In addition to having the right coverage, it's also crucial to conduct a cyber insurance risk assessment to identify potential vulnerabilities and take steps to mitigate them. This can help reduce the risk of a cyber breach and potentially even secure a lower premium.

By having the right cyber insurance liability and protection in place, you can protect your organization from the financial and reputational damage caused by a cyber breach.

AIG's cyber insurance benefits and expertise are second to none. They provided the CISO with their first notification about a cyber vulnerability, which was highly appreciated for its actionable information.

AIG's claims expertise is top-notch. They successfully helped a client recover from a ransomware attack without paying the demanded $2M bitcoin, by restoring infected files from system backups and guiding the client through necessary regulatory disclosures.

AIG has 25 years of experience in helping clients navigate the rapidly growing area of cyber risk. They launched one of the industry's first cybersecurity insurance protection programs in 1999, and have been innovating and providing insights ever since.

AIG provided the CISO with their first notification about a cyber vulnerability, which the CISO appreciated as "a feather in AIG's cap" and a "valuable part of what cyber insurance is going forward."

AIG has been helping clients navigate cyber threats for 25 years, gathering insights to inform their risk management approach.

AIG's CyberEdge risk management approach provides coverage for physical and non-physical losses resulting from a cyber event.

AIG's actionable information and expert support can help clients respond and recover quickly in the event of a security breach.

A successful phishing attack can have devastating consequences, but having the right expertise can make all the difference. A client's network was infected with ransomware after a phishing attack, with several servers encrypted and manufacturing activity stalled.

The threat actor demanded $2M in bitcoin for a decryption key and to keep sensitive information private. Thankfully, AIG's claims experts and partners were able to quickly determine that infected files could be restored from system backups, eliminating the need for a ransom payment.

AIG's cyber claims team and relationships with specialized legal and forensic firms support clients through the entire response process, facilitating a prompt return to full operations. CyberEdge covers the costs of notification efforts, call center services, and credit monitoring.

Expert guidance is crucial in navigating regulatory disclosures and formal notifications, especially when sensitive customer and employee records have been accessed. AIG's team helps clients through these complex processes, minimizing downtime and disruption.

Cyber insurance is a vital tool for protecting your business from the financial and reputational fallout of a cyber attack. To get the most out of your cyber insurance, it's essential to have a solid security foundation in place.

A Network Security Audit Coverage can help identify vulnerabilities such as outdated software and unpatched systems, which can be a major entry point for cyber threats. Cyber insurance may also cover credit monitoring services in the event of a data breach.

A Written Information Security Program (WISP) is a comprehensive plan that outlines your organization's strategy to protect against cyber threats. This should include clear roles and responsibilities, training on threats and best practices, and policies for technology usage and online conduct.

Endpoint Protection (EDR/XDR) solutions can provide a holistic view of threats across your entire infrastructure, automating threat detection and response to reduce the time to detect and respond to attacks.

A Network Security Audit is a crucial step in protecting your business from cyber threats. This type of audit is designed to help spot potential vulnerabilities, such as installing patches and updating software.

Cyber insurance can also cover credit monitoring services for cases involving the breach of sensitive data or personally identifiable information. This can provide an added layer of protection for your business and customers.

A comprehensive Network Security Audit can help identify areas of weakness and provide recommendations for improvement. By implementing these changes, you can significantly reduce the risk of a cyber attack.

Regular Network Security Audits can help ensure that your business stays ahead of emerging threats and maintains a strong security posture.

An effective Information Security Program, also known as a Cybersecurity Plan, is a coordinated set of documented policies and procedures that protect against, detect, and respond to IT security threats and data breaches.

A good program clearly defines information security roles and responsibilities for all staff. This includes implementing training on threats and best practices to ensure everyone is on the same page.

It sets policies for technology usage and online conduct, which is crucial in preventing security breaches. For example, a policy might dictate that employees use strong passwords and keep their devices up to date.

An Information Security Program details incident response plans and countermeasures in the event of an attack. This includes procedures for containing and eradicating malware, as well as notifying affected parties.

By having a solid Information Security Program in place, organizations can significantly reduce the risk of a data breach and protect their assets.