In today’s digital age, cyber threats pose an ever-present danger to businesses of all sizes. A cyber-attack can have devastating consequences, from financial losses to reputational damage.
Securing the right Cyber insurance is a critical step in protecting your organisation. However, obtaining comprehensive cover at a competitive price requires more than just applying for a standard policy.
In this article, we explore the key factors that influence Cyber insurance cover and premiums, along with steps your business can take to mitigate risks and improve your chances of securing the best possible protection. For a more detailed explanation, watch the video embedded below, where we delve into the essentials of Cyber insurance risk management.
What makes a business higher risk?
Insurers are becoming increasingly selective when it comes to providing Cyber insurance. Certain factors can place your business in a higher-risk category, potentially leading to increased premiums or even difficulty obtaining cover. Some of the most significant risk factors include:
- Handling a large volume of sensitive or personal information
- Critical systems that rely heavily on IT infrastructure
- Complex or outdated network configurations
- Legacy systems that are no longer supported by security updates
- Sectors known for slower adoption of cyber security measures
- A history of cyber incidents
If any of these apply to your organisation, it’s important to take proactive steps to reduce your risk profile. This can not only improve your chances of securing cover but may also result in better pricing.
Key cyber risk protections insurers expect
To secure Cyber insurance, your business must demonstrate that it has implemented key security measures. Insurers will typically expect you to have the following protections in place as a minimum:
- A robust IT Security Policy
- Regular software patching and antivirus protection
- Firewalls and email security filtering
- Vulnerability scanning and penetration testing
- Employee training on cyber security protocols
- Data backups
If your organisation is missing any of these basic protections, it’s crucial to prioritise their implementation—not just to meet insurance requirements, but also to safeguard your business from potential attacks.
Evolving insurer requirements
The Cyber insurance landscape is constantly evolving. Insurers are increasingly focused on advanced security measures that go beyond the basics. Some of the current priorities include:
- Multi-factor authentication for remote and administrator access
- Rapid critical security patching (within 14 days)
- Data backups that are secure from unauthorised changes
- Advanced endpoint detection and response (EDR) solutions
Failure to meet these evolving requirements can lead to declinature from insurers, particularly if your organisation is considered a high-risk operation. Businesses that wish to stand out in the insurance marketplace should also consider adopting additional measures, such as data encryption, 24/7 security monitoring, and privileged access management.
A strategic approach to Cyber insurance
Obtaining the best Cyber insurance for your business requires more than just filling out a form. A strategic, risk-based approach is essential. By conducting a Cyber insurance assessment, you can fully understand your organisation’s risk profile, address vulnerabilities, and position yourself more favourably with insurers.
This process includes:
- Evaluating your exposure to cyber risks and potential losses
- Understanding how insurers view your risk based on your network perimeter
- Presenting your risk management approach and adherence to security standards in a way that positively influences insurers
By taking these steps, your organisation will be better positioned to receive tailored cover that meets your needs at a competitive price.
How Griffiths & Armour can help
At Griffiths & Armour we conduct detailed Cyber insurance assessments for our clients, in addition to exposure modelling and insurance risk reconnaissance services to help businesses secure the best possible cover. Our team can guide you through the process, ensuring that your organisation is protected against the ever-growing threat of cyber-attacks.
To learn more about how we can support your Cyber insurance needs, please get in touch.
