Currently where online crime is rampant, it has become critical to have a reliable cybersecurity insurance plan. This layer of protection is especially true for small businesses that mainly operate in an online environment. Insurance will provide considerable financial protection in the event of an online attack.
While most business owners understand its importance, many still opt not to purchase cybersecurity insurance. Why? It’s because the premiums can get high. Many believe the risk isn’t enough to justify spending thousands of dollars on coverage. If you are lucky, then you probably won’t become a victim. But it’s not smart to wish for luck to keep you safe, especially when you realize how much damage a single attack can incur.
Is Cybersecurity Insurance Expensive?
The cost of cybersecurity insurance is understandable because of the very high perceived risk. Online crime has become not just more prevalent but also much more complex. The damage is extensive.
Another reason for the increase in premiums is the massive payouts due to data breaches. Businesses that collect sensitive data, like healthcare and banking, have larger premiums because of the information they collect. These companies are prime targets for hackers and therefore have a higher risk factor.
How to Qualify for Lower Cybersecurity Insurance Premiums
Now we get to how to lower your insurance premiums. There are ways for a qualified managed service provider to help you lower your premiums and receive the proper coverage for your business.
Do an Annual Penetration Test
This test will check how robust your security measures are to protect your business from a cyberattack. We recommend you partner with a managed services provider for this task. With this test, you can identify your system’s weak points to improve them. Insurance companies will see that you are not at risk and list you for a lower premium.
Choose Secure Passwords
This task might seem basic, but insurance companies check the password control policy when assessing applicants. A more secure policy will entitle you to lower premiums, as will a two-factor authorization, or 2FA, login policy. You should also train your employees to choose their passwords wisely. An employee readiness check will reveal how much your staff knows about the importance of passwords and other security issues.
Do Data Encryption
Again, this is something that most companies already do these days. Encrypting confidential and sensitive data is vital for protection. You can improve your data encryption methods considerably with the help of a managed services provider.
Use Your Current Insurance Provider
If you already have an insurance provider for general business liability insurance or property insurance, you can purchase your cybersecurity insurance from them if they offer it. There’s a good chance that you can get a discount from a bundle deal.
Get Peace of Mind with Reliable and Affordable Cybersecurity Insurance
Getting your business insured will surely give you peace of mind in a world riddled with online crime. But you don’t always have to pay top dollar for the best coverage. Our cybersecurity experts can help you with a risk assessment and finding the best insurance coverage that matches your needs. You can contact us to learn more about partnering with the right MSP.