Small and medium-sized businesses are facing a growing threat from hackers. Research shows that in 2024, one in every three SMBs fell victim to ransomware attacks, highlighting the urgent need for cybersecurity measures. Even the luckiest businesses with robust incident response plans are at risk of facing disruptions, data exposure, and financial penalties. In fact, 94% of ransomware attempts targeted backups, underscoring the importance of cyber resilience.
Upfront Risk Assessments Save Time and Money
Ensuring proper cybersecurity controls is crucial for SMBs seeking cyber insurance coverage. Conducting internal risk assessments and engaging with cybersecurity ratings companies can help businesses understand their risk profile and make informed decisions when shopping for policies. By being proactive and prepared, businesses can advocate for themselves during the underwriting process and increase their chances of qualifying for coverage.
Proper Security Controls Are Necessary for Coverage
Having adequate cybersecurity controls in place is essential for obtaining cyber insurance coverage. Insurers typically assess a set of key controls, known as the “big 12,” including multifactor authentication, privileged access management, endpoint protection, and incident response plans. Businesses must be able to demonstrate compliance with these controls to insurers, using detailed and qualified responses to ensure coverage and prepare for potential claims.
Implementing the required technology and controls can be facilitated by partnering with experienced providers like CDW, who offer a range of cybersecurity solutions from various vendors. Businesses should carefully consider their options and choose affordable yet effective solutions to enhance their cybersecurity posture. By investing in the right tools and expertise, SMBs can strengthen their defenses and mitigate the risk of cyber threats.
Cyber Insurance Isn’t a One-Time Thing
Annual review of cyber insurance policies is necessary for businesses to adapt to evolving threats and maintain adequate coverage. Renewing policies may involve completing questionnaires and reassessing insurance needs, especially if multiple insurers are involved. Adding context to responses and understanding the impact on insurability and premiums is crucial for businesses to navigate the renewal process effectively and ensure comprehensive protection against cyber risks.
