As the cyber insurance market evolves more providers are looking for ways to mitigate your risk. Less risk means fewer claims to pay out.
Insurance companies typically look for five essential security requirements before agreeing to provide cyber insurance coverage.
1. Multi-factor authentication (MFA), also known as two-factor authentication, is one of the best controls available for securing user accounts and preventing unauthorized logins. MFA requires users to log into an account to validate their identity with a username and password. An additional layer of security authenticates users by way of a second factor, such as a one-time code sent to their mobile device, email, or from a token.
2. Cybersecurity training is one of the most cost-effective security methods available. Routine training can help educate team members about the latest threats and remind them to stay vigilant against potential malicious activity. It also matters because most breaches come from human error.
3. Maintain good data backups. A good data backup can mean the difference between a complete loss or a full recovery after a cyber-attack. Redundancy is critical in a good backup strategy. Businesses should use both on- and off-site backups for storing essential data. It’s critical that at least one form of backup be stored completely separate from the primary network.
4. Identity access management (IAM) – While there are numerous ways of applying IAM across networks, the basic focus is on assigning and managing digital identities for users who require it. This helps ensure that only certain users can access certain data, depending on their role within the organization.
5. Enforce data classification – This means that users should only have enough digital rights to perform their job functions. Data classification or “need to know” access helps organizations ensure they are enforcing this principle across all devices to meet cyber insurance requirements.
In addition, there are some other components that are less critical but still important. Following these requirements can help secure more favorable rates on a cyber policy and ensure that its security controls are effective.
- Strong password policies
- Antivirus or Endpoint Detection and Response (EDR) software
- Firewalls
- Incident response plans
Security Risk Assessments
These assessments identify vulnerabilities within your networks and processes. They give clearer insights into the concrete steps you can take to improve your overall cybersecurity. Benefits of a cyber risk assessment include:
- Reduce Security Incident-Related Costs
- Minimize Data Breaches
- Minimize Lost Productivity
- Identify Redundant or Unnecessary Systems
Cyber risk isn’t going away, but with DataLink’s cybersecurity expertise and proactive approach, your organization can meet its cyber insurance coverage requirements, reduce risk, and prevent incidents before they strike.
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