Given the rise in cybersecurity threats, many companies have chosen cyber insurance. These insurance policies cover liabilities related to cyberattacks. For instance, if your company suffers a data breach and is sued by those affected, cyber insurance can step in to cover the bill. However, just as car insurance can refuse to cover your car if it’s not in proper condition, cyber insurance is subject to your adherence to the latest cybersecurity tips & best practices.
If you want your policy to remain in place, you’ll need to be prepared to update your cybersecurity policies as both threats and legislation evolve. When your policy comes up for renewal, insurers will carefully examine how secure your systems are. If they’re not up to date, you’ll have a long list to get through before you can renew your policy. So, what changes should you expect, and how can you prepare for them?
Get Ready for Changes
Most companies will have to make major changes to how they handle consumer data. This, in turn, may lead to process changes or new access permissions in your company. Although these changes are for the better with regard to your cybersecurity, they may seem difficult to overcome. However, the upgrades and adjustments are worth it. Prevention is better than addressing a crisis, so don’t put off making these changes. Partnering with a Managed Security Service Provider, like Edafio, will bring their insights and expertise on the latest changes that may significantly impact your Cyber insurance renewal and, ultimately, your business.
Updated security policies and better cybersecurity tools will enable more possibilities for your business. For example, you could have access to a wider talent pool using remote work, but you need to make sure your remote workers aren’t a vulnerability. Centralizing your data in the cloud facilitates collaboration and data analysis, but it also means you’ll have to guard against unauthorized access and phishing attacks. Cybersecurity and productivity go hand in hand. Nevertheless, why are insurers pushing for change now?
Expect Data Privacy Law Compliance to Be a Priority
Cyber insurance companies will almost certainly mention data privacy laws at some point during your renewal. Even though data privacy laws have been in place in Europe for several years, American legislation has been slower to adopt laws protecting consumers’ data rights. However, that trend is quickly changing. Back in 2018, only two states even considered a data privacy bill in their state legislatures. California was the only state to pass such a law, the CCPA (California Consumer Privacy Act).
Compare that to 2021, when 29 states considered data privacy bills, and two of them, namely Colorado and Virginia, passed legislation protecting data privacy. In 2022, more than 50 bills were put on the table. The writing is on the wall: data privacy laws will reach your district soon. Even if you do not do business in a state with privacy protections, your company might have to comply anyway if it wants to do business in a state that does.
Why Data Privacy Laws Impact Cyber Insurance
Data privacy might seem like a footnote in the broader discussion of cybersecurity. Cyber insurance is supposed to cover you when there’s an attack. Does it matter whether there are data privacy laws on the books? In some cases, these laws matter more than anything else. For instance, California’s CCPA gives individual consumers the right to sue a company for up to $750 in damages in civil court if their data is leaked! Now, imagine a class-action lawsuit.
A company that loses ten thousand Californian records could be on the hook for over $7 million in damages. This is what concerns your cyber insurance company. Data privacy laws essentially increase the potential liability risk if you suffer a breach. Therefore, you will have to follow the latest cybersecurity tips & best practices to keep your coverage valid. That may involve changing your entire workflow.
Your Processes Might Come Under Scrutiny
Employees are the weakest link when it comes to cybersecurity. The more people that can access sensitive information, the easier it is for it to be leaked. Therefore, you can expect insurance companies to look at your processes to spot potential vulnerabilities. This is already widespread practice in the healthcare sector, where only authorized individuals can access medical records from authorized access points.
Similar changes may be necessary for your business too. However, this doesn’t mean that your employees won’t have access to the information they need to do their jobs. There are ways to implement cybersecurity tips & best practices without hampering your ability to work.
Prepare to Implement the Latest Cybersecurity Tips & Best Practices
Before meeting insurers, take stock of your current cybersecurity policies and practices. You may want to take proactive steps before your meeting. Being up to date with your cybersecurity management could even result in lower premiums.
You’ll want to have the latest cybersecurity monitoring software. You may also want to start transitioning away from older software. Start taking steps towards data privacy law compliance by anonymizing data and controlling access more intelligently.
24/7 Monitoring Is a Must
As you rely more on the cloud and mobile devices to facilitate remote work, you’ll need monitoring software that can keep track of your files and keep your devices safe. 24/7 monitoring software uses AI (Artificial Intelligence) algorithms to learn how your company handles its data. It can detect unusual logins and strange file access behaviors and even halt activity without human intervention. It can also monitor your systems to prevent ransomware or other malware installations.
Automate Anonymization and Encryption
If you want to stay ahead of data privacy laws, start anonymizing and encrypting your data. Encryption will ensure that no one can pilfer data as it travels from one point to another. Anonymization, on the other hand, goes a step further. Records can be written with code that refers to a more secure server, which only outputs sensitive information to authorized users as needed. If someone stole the record, they wouldn’t get enough information to identify the person.
Ditch Old Software with Vulnerabilities
If you’re running on older software versions, it might be time to upgrade to cloud-based tools or have a new program designed for your business. Old software can be riddled with vulnerabilities.
If you’re not sure if your cybersecurity is up to code, speak to the experts. Contact Edafio Technology Partners to schedule a free consultation with one of our certified cybersecurity consultants.
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