You decide to follow advice about obtaining cybersecurity insurance coverage. You reach out to your broker, fill out the forms, and you are denied. Or, you find out coverage is super expensive and difficult to justify the cost. Can this really happen?
Yes, it can.
The cost of a data breach in the U.S., according to IBM’s “Cost of a Data Breach Report 2021,” amounted to $9 million.
The rising frequency and severity of cyber losses are translating to a surge in premiums, deductibles, and more restrictive underwriting criteria. In some cases, businesses are met with outright denials of coverage.
Basic security protocols from 2019, like data backups, firewalls, and multi-factor authentication, are no longer sufficient. The next generation of cybersecurity demands an elevated posture, incorporating advanced Endpoint Detection and Response (EDR) and Security Information and Event Management (SIEM) technology. An incident response plan is now a key focus, shifting from mere prevention being an acceptable solution.
Cybercrime doesn’t discriminate, and the severity of attacks has prompted changes in the cyber liability insurance market. Higher premiums and stricter controls are now prerequisites for coverage. Organizations are advised to proactively implement robust safeguards against evolving threats. Cybersecurity is an ongoing commitment, which requires constant monitoring and maintenance.
If you’re looking to add cybersecurity insurance coverage for your business and need help implementing some of the stricter controls now required by insurance companies, Endecom IT can help! We can make recommendations, and fully manage the installation, setup, and management of these controls which will not only help you get coverage, but will also help reduce the chances you will ever need to filel a claim in the first place.