Cyber attacks – what you need to know
2020 has seen several high-profile cyber attacks hit the headlines already, with more being reported on what seems to be a daily basis. It’s reported that 1.5 billion records were breached in January 2020 alone.
Companies and organisations including Redcar and Cleveland Council, Mitsubishi Electric, SuperCasino, H&M and even tech giant Microsoft have all been involved in cyber attacks and data breaches of late.
Each of these events have a big impact on public confidence, and even more companies are turning to cyber insurance to get cover for worst-case scenarios.
Cyber Insurance Payouts
However, as more and more companies adopt cyber security insurance as a measure to mitigate the fallout of their cyber security risks, some are finding out the hard way that their IT governance plays a major role in making sure you’re actually covered.
In the wake of cyber attacks, some companies have failed to receive cyber insurance payouts. Why? Because their IT governance wasn’t strong enough to prove they were compliant with best practice.
What is cyber security insurance and why do you need it?
Cybersecurity insurance is designed to cover you if you are affected by a cyber attack or a data breach. You may need to claim if your systems are hacked or hit with a virus.
These attacks can cause sensitive data to fall into the wrong hands and result in legal action being taken against you by your customers. They can also result in down time for your business and if you don’t have a business continuity plan in place, this downtime can be catastrophic.
The payment you receive after a claim can help you cover the cost of putting things right, and even cover the cost of lost revenue and staff salaries while you’re getting back on your feet.
Will you be covered in the event of a breach or attack?
Most insurance companies will provide you with a checklist that you have to complete to get the cover you need. They use these checklists to assess the level of coverage you need and the level of risk you represent.
These checklists can include everything from what your annual revenue is, and what third party managed service partner you have, to whether or not you have a BCP in place and implement multi-factor authentication across your business.
However, many business owners fail to realise the importance of these checklists. Yes, they are designed to assess your levels of risk and coverage, but the future of your business could be in jeopardy if you don’t comply with how you complete them.
If, for instance, an insurance company can prove that you didn’t comply with a checklist that you submitted, and that this non-compliance led to a breach, they will have strong grounds to withhold your payout.
For example, if you check the box that says you enforce MFA across your business and your insurer finds out that you didn’t, and as a result, one of your systems was compromised, you might find that you aren’t entitled to a claim.
Some businesses have seen payouts withheld not because they deliberately provided incorrect information but because they were confused about various topics and used guesswork to complete the form.
Read on to find out how you can avoid missing out on a payment in the event of a claim.
Enlisting a Managed Service Provider (MSP)
Help is available to ensure that your checklist is submitted correctly, and that you have IT governance in place to make sure that the insurer’s criteria are met.
MSPs can help you ensure your IT governance is sufficient enough for you to get the cover that you need and receive a payout from your insurer in the event of a breach. Having the right MSP in place can also help to bring your cyber insurance premium down, because it dramatically reduces your company’s risk of a breach.
If you need help with ensuring your governance is in order or if you are looking to take out a cyber insurance policy, you should talk to an MSP. Your MSP will work closely with you to ensure the expectations of your insurer are met so the best outcome is achieved after a breach or attack.
IT Governance Checklist for Cyber Insurance
To find out what kind of checklists cyber insurers are looking for, and to highlight aspects of your IT governance that might need attention, you can download our IT Governance Checklist below:
Speak To DC Networks Today
Speak to our team today about your cyber security requirements, we’re standing by to take your call and can meet you on site to review your needs and provide a competition quote for you cyber security.