It’s no secret that cyberattacks are on the rise, but did you know that the number of data breaches increased by 72% from 2021 to 2023? This alarming jump shows that businesses need cybersecurity and cyber insurance now more than ever.
We’re here to help you navigate both strict cyber insurance requirements and the intense application process.
Why Is it So Hard to Get Cyber Insurance?
First, let’s take a minute to understand why securing cyber insurance is so difficult. More systems move online each day, and the number of cyberattacks (as well as the ways hackers can execute them) is growing as well. This means that just about everyone is at risk of a cybersecurity incident, and just about everybody wants some form of cyber insurance.
This high demand, combined with the high costs of resolving breaches, is problematic because insurance companies can’t provide insurance for everyone. They also want to avoid insuring organizations that aren’t properly protected—just like property insurance companies aren’t likely to offer flood policies for houses built in areas that are frequently under water.
This leads to intense cyber insurance requirements and extremely detailed applications. Meeting the strict criteria requires financial and time commitments that can be difficult to manage while still maintaining the core operations of a business. However, with the proper preparation and help, you can successfully secure cyber insurance.
What Are Some of the Cyber Insurance Requirements?
Each policy will have slightly different requirements, but here are a few common systems you need to have in place in order to qualify for cyber insurance.
- Multi-factor authentication (MFA), especially for remote access
- Access controls
- Proper password hygiene (enforcing strong passwords, unique usernames, etc.)
- Encryption
- Threat detection and protection (e.g., active firewalls, EDR)
- Effective software care (sufficient use of patches, updates, and endpoint protection)
- Data backup strategies
- Recovery and continuity plans (IRP, DRP, BCP, etc.)
- Spam filters
- Employee training on identifying and avoiding threats
- Physical security for computers, server rooms, etc.
- Compliance measures to stay in line with national and industry standards
How Do I Apply for Cyber Insurance?
The first step in applying for cyber insurance is to find a policy that meets your specific needs. Carefully evaluate policies before you start the application process or make any payments to make sure the cyber insurance requirements, coverage, and any other details align with your goals, needs, and abilities.
Once you’ve found the right plan, it’s time to start your application. It’s always best to begin as early as possible, as the process usually takes longer than you think. You’ll want to have plenty of time to answer questions thoroughly, take a closer look at any issues, answer questions, and consult any of the necessary members of your organization.
Be sure to include all the necessary teams as you work through the application, not just your IT division. Your legal, risk management, HR, and financial departments (among others) may all need to contribute answers.
Finally, be honest, careful, and detailed in your answers. Don’t try to hide or falsify information about your security. Instead, explain your systems carefully and provide context for any exceptions you have to normal security practices. Giving as much detail as possible will help the insurance company understand your decisions and your level of protection.
Tips for Success
The exact cyber insurance requirements for which security systems and software you need to have in place will vary from policy to policy. These tips are designed to help you be ready to tackle the application and make any changes necessary to meet regulations.
Invest in Quality Cybersecurity
To meet even the most basic cyber insurance requirements, you need proactive, comprehensive cybersecurity practices and systems.
Opting for cheaper, easier solutions may be tempting, especially when funds are tight. In the end, though, investing in services that provide complete protection will be worth every penny—you’ll avoid costly breaches, and you’ll be able to get cyber insurance to help cover expenses if there is an incident.
Keep Detailed Records
You’ll need to outline the nitty gritty details of your security practices, report any past breaches, identify who’s in charge of what systems, and provide documentation of your compliance with cyber insurance requirements as part of your application. Meticulous record keeping will help you answer questions completely and make finding necessary information seamless.
Involve the Team
Help your team members understand why cybersecurity practices are important, both to protect your business and to help you qualify for cyber insurance. Train them on recognizing phishing attempts, creating strong passwords, following correct procedures, keeping proper documentation, etc., so they can actively contribute to your business’s cybersecurity.
Partner with a Reliable IT Provider
For the best chances of meeting cyber insurance requirements, we recommend partnering with a reputable IT firm.
They’ll be able to evaluate your current systems and identify areas for improvement, filling in any gaps to help you meet standards. Many firms offer cybersecurity, help desk, backup, recovery, and compliance services, all of which are necessary for keeping your systems safe and successfully obtaining cyber insurance.
Get Insurance Ready with Run Networks
At Run Networks, we don’t believe in so-so cybersecurity. What other providers offer as their strongest protection is just where we begin at Run Networks, and we won’t stop until your systems are safeguarded and in alignment with cyber insurance requirements. When it comes to applying for cyber insurance, our clients always pass with flying colors because they’ve been set up with the best tools to begin with. And you can be next. Request a network evaluation to start preparing for your cyber insurance application today.
