Blog Post

Cyber liability insurance has two parts: Your requirements and the cyber insurance coverage. First, you agree to reduce your business risk exposure. Second, the cyber insurance company agrees to cover the remaining business risk exposure. If you do not show evidence that you have implemented the cyber insurance requirements, you are not entitled to cyber insurance payouts in the event of an incident.

Falsely claiming to meet the requirements is easy when signing up for the policy. But cyber insurance companies aggressively look for ways to refuse payouts. You must prove to the cyber insurance company that you are implementing the requirements. When you sign up for the policy you agree to an annual risk assessment by checking a box. When you file a claim, they will ask for a copy of that assessment. They will ask for a copy of your incident response plan and the scores of the security training you provided to your employees. The cyber insurance company may have an email specialist examine MFA and encryption.

If you aren’t fulfilling the requirements, the cyber insurance policy isn’t covering your business risk exposure. I’m sure that a cyber insurance policy gives you the feeling of being covered, but it’s just a placebo effect. You’re actually throwing money down the drain.

Here are six common cybersecurity insurance requirements that you must do to reduce your business risk exposure to cyberattacks:

• • Strong Access Controls: Implement robust access controls to limit unauthorized access.
  • Regular Vulnerability Assessments: Identify and remediate system weaknesses.
  • Incident Response Plan: Have a plan in place to handle breaches.
  • Employee Training: Educate employees on phishing and cyber threats.
  • Multi-Factor Authentication (MFA): Enhance login security.
  • Data Encryption: Protect sensitive information.

Dedicated to your liberty, safety, and digital health,

Tim Meredith

Tech Eagles

Look at your cyber insurance policy and talk with your broker to find out the specific requirements for your policy. If you’re unsure you’ll be covered, contact us today to become compliant.