8 Tips for Lowering Your Cyber Insurance Premium in 2023
No business is immune to cyber-crimes and cyber security risks. Threats emerge from various sides and corners causing exponential losses to businesses. The increase in cyber-attacks and data breaches every year makes cyber insurance one of the most sought-after business insurances in the current times. This has led to a steep rise in cyber insurance premiums. Insurance companies, too, are taking tougher measures on deciding the premium amounts from their prospective and current cyber policyholders.Read more
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Cyber insurance is a standalone policy for organisations that have their data stored online. It is meant to help companies recover from cyber-attacks or cyber-crimes. Loss of data due to security breaches, service interruptions, network outages, or similar cyber-attacks is typically covered under cyber insurance.
Reasons behind Increasing Premium Rates
In recent times, cyber insurance premiums have seen a considerable spike. Below are a few reasons for this premium increase.
- Increase in ransomware
- Increase in data breaches
- Work-from-home or the hybrid model
- Increase in social engineering
- Increase in laws and regulations
Tips to Lower Your Cyber Insurance Premium
Insurance companies scrutinize the cyber security measures taken by an organization to determine the premium amount. Preventive cyber security measures are one of the most decisive factors for premium calculation. Thus, we share a few tips that can help reduce the cyber insurance premium.
Conduct regular testing
By conducting timely and regular testing, you will be able to determine the vulnerabilities attached to your systems, processes and overall business. Regular testing showcases a lower risk profile in the eyes of the insurer.
Implement disaster recovery and data backup solution
You must make sure your organization can recover quickly from cyber-attacks. If the attack is a minor one, the recovery should be quicker, maybe within hours. Best solutions should be put into place to achieve cyber-related safety.
Use antivirus and anti-malware applications
Antivirus and anti-malware applications differ for organizations. They are more robust and are ideally managed by the IT teams. Thus, opt for enterprise-level antimalware and antivirus applications.
It is always recommended to opt for a reputed website hosting provider. This provider usually offers a range of features or plug-ins for website security.
Patching software is very crucial, as many cybersecurity incidents in the recent past have emerged from unpatched software.
Implement a strong password control policy
Weak passwords are easy targets for cyber attackers. A strong password with a combination of uppercase and lower cases letters, numbers and symbols should be encouraged. Also, Two-Factor Authentication (2FA) can lessen the instances of a data breach.
Encryption of data will ensure that even if the data is stolen or hacked, it might not be of any use to the hacker. All applications, documents, web browsers, email, etc. should have encrypted data for high-security purposes.
Cybersecurity is one area where everyone plays a part to remain safe. For instance, a marketing employee may click on a suspicious email and give way to ransomware in your organization. Thus, all employees must be made aware of such threats. The more informed and educated the employees are, the fewer the chances of common cybersecurity scams.
Cyber insurance is an important part of an organization’s insurance portfolio. The rising cyber insurance premium should not, however, be a bottleneck for buying one. Implementing the above-mentioned tips can help in a big way to reduce your premiums and also improve your organization’s cybersecurity.