Cybersecurity is one of the most critical concerns for small business owners today. A single cyber-attack can bring down a business, causing financial losses, reputational damage, and even legal liabilities. Business owners increasingly turn to cyber insurance policies to help mitigate cyber risk. These policies transfer some risk by providing resources, such as money and services, to deal with data breaches, network outages, and cyber extortion. However, cyber insurance is rarely sufficient to deal with the havoc that can ensue when a small business experiences an incident or breach.
Cyber insurance applications can teach small business owners a lot about effective cybersecurity risk management. Cyber insurance applications have grown from a few questions to many pages of questions as carriers seek to better assess risks based on the cybersecurity posture of their customers. This blog post will explore the key lessons that small business owners can learn from the questions asked on a cyber insurance application.
Current cyber insurance applications focus on the following topics:
- Endpoint Management
Endpoint management refers to the management of laptops, desktops, servers, and mobile devices. Cyber insurance applications focus on endpoint management because endpoints are often the entry point for cyber attackers. Implementing endpoint management practices such as vulnerability scanning, patch management, and device encryption.
- Phishing Prevention
Phishing is a type of cyber-attack where attackers use social engineering techniques to trick users into divulging sensitive information such as login credentials or credit card details. Phishing attacks are widespread and can be devastating for small businesses. Cyber insurance applications focus on phishing prevention because it is one of the most common types of cyber attacks. Small business owners can implement phishing prevention measures such as employee training, email filtering, and multi-factor authentication.
- Identity Management
Identity management refers to managing user identities, access rights, and privileges. Identity management is critical for ensuring that only authorized users can access business data and networks. Cyber insurance applications focus on identity management because compromised user credentials are a common entry point for cyber attackers. Small business owners can learn from this and implement identity management practices such as password policies, enterprise password managers, user access control, and single sign-on (SSO).
- Data Backup Solutions
Data backup solutions refer to the process of creating copies of business data and storing them in a secure location. Data backup solutions are critical for ensuring business continuity during a cyber-attack or other disaster. Cyber insurance applications focus on data backup solutions because they are critical for mitigating the impact of a cyber-attack. Application questions center around the segregation of backups because insurance companies know that cybercriminals will delete or encrypt backups if they can access systems. Small business owners can learn from this and implement data backup solutions such as cloud backup, offsite backup, and developing disaster recovery plans.
- Endpoint Detection & Response
Endpoint detection & response refers to the process of detecting and responding to security incidents on endpoints through software and monitoring services. Endpoint detection & response is critical for detecting and responding to cyber-attacks before they cause significant damage. Cyber insurance applications focus on endpoint detection & response because it is a critical component of effective cybersecurity risk management. Small business owners can learn from this and implement endpoint detection & response measures such as threat hunting, incident response planning, and security monitoring.
The good news is that most IT-managed service providers and managed security service providers offer services to cover 100% of the risks cyber insurance companies focus on. If you cannot mitigate your cyber on your own, fast-track your risk mitigation and insurance readiness by contacting a managed security service provider like Go West IT.