Skip to main content

Ensuring Cyber Insurance Coverage: The Crucial Role of Security Controls

In today's digital landscape, many business owners believe that obtaining a cyber insurance policy automatically guarantees protection. However, this assumption is far from reality. Even with general liability policies that cover cyber claims, organizations must meet specific minimum requirements to ensure their claims are approved. In fact, some insurance carriers may collaborate with cybersecurity partners to evaluate the implementation of security controls before determining coverage applicability.

Xcape, Inc. can offer the guidance and expertise to ensure these security controls are implemented to strengthen your overall security posture. In addition, our Managed IT Provider Services implementation of the following security controls gives organizations quicker recovery in the event of a security incident so that our customers can get back to work in minutes and hours vs. days and weeks. 

Does your organizations meet the specific minimum requirements to ensure their claims are approved?

Although often overlooked by insurance providers, your policy documents clearly outline these minimum requirements. To shed light on this crucial aspect, we have consulted local business insurance brokers to compile a list of mandatory security controls that must be in place when filing a cyber insurance claim with your carrier.

Top five security controls cyber insurance companies require for coverage.

  1. Multi-Factor Authentication (MFA): In response to high-profile data breaches, organizations are increasingly adopting MFA as a cybersecurity measure. MFA safeguards sensitive data by requiring users to authenticate their identity through multiple factors. The most common MFA method involves a combination of passwords, fingerprints, or other biometric identifiers. In the event of a data breach, MFA adoption can help mitigate costly fines and damages, making it an integral part of a comprehensive cybersecurity strategy.
  2. Security Awareness Training and Testing: To qualify for cyber insurance, businesses must complete security awareness training and testing. This proactive approach keeps employees updated on evolving security threats and procedures, reducing the risk of falling victim to cyberattacks. Regularly conducting simulated phishing campaigns and tests helps instill a baseline level of vigilance against suspicious emails. After all, no one wants to fail a phishing test email and be subjected to additional training.
  3. Separate Backup: It is a common misconception that a single data backup is sufficient to protect against potential cyberattacks. In reality, maintaining separate backups is crucial for comprehensive protection. By storing backups separately from the primary environment, businesses ensure that a compromised backup does not leave them exposed. Additionally, having backups in an off-site location safeguards against attacks on the main infrastructure. The presence of separate backups is a fundamental requirement when procuring cyber insurance, as it significantly reduces the risk of data loss and compromise. (Have you tested your backup recently?)
  4. Endpoint Detection and Response/Managed Detection and Response (EDR/MDR): Adequate endpoint detection and response (EDR) or managed detection and response (MDR) solutions are essential for any organization. These tools play a critical role in an effective cybersecurity program by detecting and halting high-risk or anomalous activities. EDR refers to the tool itself, while MDR is a service where real people monitor EDR tools, actively investigating and responding to potential threats. Organizations with these robust capabilities can enhance their defense against emerging threats, such as zero-day cyberattacks, thereby instilling confidence in their cybersecurity posture.
  5. Vulnerability Management: Vulnerability management is an ongoing process that involves identifying, classifying, remediating, and mitigating potential security weaknesses. Organizations must integrate vulnerability management into their overall security posture to ensure a proactive approach. Vulnerability scanning is a vital component of this process, enabling companies to identify vulnerabilities in their networks before attackers exploit them. Regular external vulnerability scans should be conducted to identify potential weaknesses that external attackers could exploit. Additionally, more frequent internal vulnerability scans should be performed to identify vulnerabilities that could be maliciously exploited by internal users. Cyber insurance policies typically require companies to demonstrate a proactive and comprehensive vulnerability management program to qualify for coverage. Insurers recognize the significance of vulnerability management in mitigating risks and preventing potential incidents.

Understanding the importance of security controls within cyber insurance policies is paramount for businesses seeking adequate coverage. Organizations can significantly improve their chances of obtaining cyber insurance coverage and mitigating potential financial losses during a cyber incident by ensuring compliance with these minimum requirements. In addition, business owners must proactively implement these security controls to demonstrate their commitment to safeguarding sensitive data and protecting their organization against cyber threats.

Furthermore, it is essential to regularly review and update these security controls as new threats and vulnerabilities emerge. Cyber insurance policies often require organizations to maintain an ongoing commitment to cybersecurity and demonstrate continuous improvement in their security practices. One of the ways this can be achieved is with a Penetration Testing as a Service product like ours, where we continuously scan and attack your environment to establish an adequate risk baseline of what your infrastructure is exposed to. With this ongoing relationship, we help organizations minimize their exposure by continuously working together to mitigate findings from our system. 

In addition to meeting the minimum requirements, organizations should consider engaging with third-party cybersecurity experts and consultants to assess their overall cybersecurity posture. Our organization can provide valuable insights, recommend additional security measures, and ensure the company is adequately protected. Schedule a free security consultation with us today to learn how we can help solve your cyber security problems.

By taking a comprehensive approach to cybersecurity and meeting the minimum security requirements set forth by cyber insurance policies, businesses can enhance their risk management strategies and demonstrate their commitment to protecting valuable data and minimizing the financial impact of potential cyber incidents. In addition, our team has an established track record of keeping businesses online and incident free.

TL;DR, cyber insurance coverage is not a guarantee of protection on its own. Organizations must understand and meet the minimum security requirements outlined in their policies. By partnering with an organization like Xcape, Inc., we can assist by first analyzing your companies infrastructure, procedures, and policies to develop a plan to implement robust security controls, such as multi-factor authentication, security awareness training, separate backups, endpoint detection and response, and vulnerability management, businesses can significantly improve their cyber security posture, reduce the risk of cyber incidents, ensure they meet the criteria for cyber insurance coverage, and reduce downtime even when mitigating an incident.

Schedule a free consultation today, and we'll dive into your specific pain points and how our solutions can address them.


Popular posts from this blog

Why you should pick Xcape, Inc., for backup internet.

In today's hyper-connected world, internet downtime can be catastrophic for businesses and individuals. That's why having a reliable backup internet service is crucial. This blog post will pit our cellular backup service and router ( NetMaxX ) against another provider to show why our backup internet service is superior. Our customer recently complained to their primary internet service provider about their internet downtimes on an install. They sent a technician to install a failover router and service from their primary provider. Unfortunately, not only was the technician they sent unable to install and configure the failover router properly. But they continued going down until we installed our NetMaxX , utilizing our network. First and foremost, our backup internet service offers automatic failover. If the primary internet connection fails, our service automatically switches over to the backup cellular connection, ensuring minimal disruption to your internet access. Not that

Have you tested your backup recently?

We're in the business of helping people, so when a business owner reached out for assistance during a ransomware attack they had experienced, our first question was, "When was your most recent backup?" The owner said his CTO assured him they backed up their Amazon Web Services infrastructure.  Well, they had one snapshot from several years ago, which wouldn't do anything for them. Of course, we always feel bad for giving business owners awful news. But, sometimes, even as experts without the absolute minimum being done technically, we're only left with a few options in ways we can help. So we reversed-engineered and created a decryption application based on the ransomware sample we recovered during our investigation. Recovering over 3 TB of data in the process. While that's not always a possibility, in this case, many things went right for us during the investigation.  Is there a better way to handle ransomware attack recovery ? YES! But the issue wasn't t

How secure is your SMB's domain name?

Studies show that small businesses are being targeted now more than ever in cyber attacks. ( Forbes: Small Businesses Are More Frequent Targets Of Cyberattacks Than Larger Companies ) When cybersecurity professionals discuss two-factor authentication, domain registrars or DNS hijacking is often not the topic. (Think 2FA for GoDaddy , NameCheap , and SquareSpace , to name a few. Take a moment and use these links to setup 2fa for your domain, or google "How to turn on 2fa for name of provider .") Surprisingly, even in 2023, some providers still don't support this essential security control.  However, your domain name controls an organization's corporate website and email exchange records. And suppose an attacker were to get control of it. In that case, they could recreate your email addresses, and password reset their way to control all the accounts owned by an organization.  A few of the recent incidents we've responded to involve attacks where the attacker obtains