Small and midsize businesses are often targets of cyber-attacks – hacking, phishing, viruses and more. While there are safeguards businesses can take to prevent these attacks, there is no perfect security solution. Many companies are looking to answer the “what-if?” by purchasing cyber insurance, to help ensure business continuity even in the event of a breach. Let’s take a look at some of the ways cyber insurance can protect your company, as well as some of the caveats to purchasing such a policy.

Cyber insurance protects companies in the event of a data breach. We recommend speaking with a trusted insurance advisor to determine the best policy for your business. There are multiple options for first- and third-party coverage, but generally speaking, cyber insurance provides the following benefits:

  • Reimbursement for production downtime
  • Recovering compromised data and systems
  • Notifying and remedying any affected customers
  • PR and legal support for the aftermath
  • Investigation into data breach

However, there are a few things to consider when purchasing a cyber insurance policy.

The first is cost. Obviously, all insurance has a cost, and cyber insurance is no exception. On the whole, the plans tend to be affordable for most businesses, given the potential downside to not being covered.

The second is fulfilling the insurance company’s requirements. This can be a difficult task, depending on the existing environment and employee culture. Things such as password length and complexity, as well as expiration, may need to be implemented if not previously. Securing remote connections is another big requirement, which can change the workflow of employees and require training to successfully implement, not to mention that it often requires network infrastructure to be upgraded to modern standards. Phish testing and security awareness training are usually required as well. All of these things are good for security in general – but fulfilling them rapidly to meet insurance requirements can be tricky.

At Layered Systems, we support small and midsize businesses’ networks to make sure they meet the requirements set forth by cyber insurance providers. If your business needs guidance “checking all the boxes,” we’re here to help. Contact Us to learn more.