Cyber Insurance: A Safety Net, Not a Substitute, for Security
Cyber insurance is a significant asset in your risk management arsenal. Consider it one of your many weapons against cyberthreats. However, there is a common assumption that only having cyber insurance is sufficient. The reality is, without a comprehensive cybersecurity plan, your insurance can only provide limited protection.
In this blog, we’ll explain why cyber insurance should be viewed as a safety net rather than a substitute for proper security.
Understanding the limits of cyber insurance
In the modern day workplace, cyber insurance is essential. However, having insurance does not ensure a payment. Here are some things that cyber insurance cannot assist you with:
Business interruption: Your cyber insurance coverage can never entirely cover the cost of lost productivity caused by a cyberattack. In most circumstances, the compensation will be minimal and insufficient to compensate your losses from the company disruption.
Reputational damage: Cyber insurance cannot help you regain consumer trust. It would take a lot of effort to restore your organization’s reputation.
Evolving threats: Cyberthreats are always developing, and your insurance coverage may not cover new approaches.
Social engineering attacks: Social engineering exploits are frequently used by cybercriminals to deceive unsuspecting victims. If your firm suffers damages as a result of a social engineering assault, such as a phishing scam, you may not be protected.
Insider threats: Insurance carriers seldom pay losses caused by internal risks. If the breach was caused by an inside threat, your coverage provider may decline to accept the claim.
Nation-state attacks: Sometimes, rogue state nations utilize their hackers to launch cyberattacks on other countries. Many insurance companies classify such actions as acts of war and will not cover them.
Five steps to build a strong cybersecurity posture
Implement these proactive actions to boost your defenses:
- Employee training is essential for developing a robust defense against cyberattacks. Hold frequent seminars and bootcamps to teach your workforce about the best cybersecurity practices.
- Create robust password policies. Using multi-factor authentication will significantly increase internal security.
- Backup your important company data on a regular basis. This will allow you to recover fast in the event of a breach or a ransomware assault.
- Keep your software and security systems up to date. Monitor and address issues before hackers get the chance to exploit them.
- Consider your network to be your fortress, and take every precaution to secure it from hackers. Create a robust network security architecture, including firewalls, anti-virus software, and threat detection systems.
Build a Resilient Future For Your Business
To have a strong defense posture, you must have good cyber insurance coverage and a comprehensive cybersecurity plan. However, balancing the obligations of running a business and developing a thorough security policy may be demanding. This is where an experienced partner like Atom Creek can assist! We can assess your present IT infrastructure and provide a plan that is appropriate for you. Contact sales@atomcreek.com now to get started!
