Cybersecurity Insurance Requirements

Once upon a time, a cybersecurity plan was a “nice to have” item for businesses. In 2022 however, not having the proper cybersecurity measures in place can result in major insurance problems for businesses.

In short, the cybersecurity insurance market is changing due to increasing cybercriminal activity. Insurance providers are now becoming more stringent with their requirements, and if not met, can result in higher premiums for businesses or in restrictions in coverage.

As you go through the underwriting process to obtain or renew cybersecurity insurance for your business, your underwriter is going to ask detailed questions regarding the type of protections and proactive solutions you have in place, before even providing you with a quote. It’s becoming more and more common for businesses (including non-profits) to be given a very in-depth questionnaire by their insurance carrier that must be completed before cybersecurity insurance is provided. And should you file a claim for any kind of event related to cybersecurity, your answers on that questionnaire will be reviewed during the claims process.

Information security is not only paramount to your operations, but it is now directly tied to your insurance coverage and costs.

Common questions on the insurance questionnaire include:

•            Do you pre-screen emails for potentially malicious attachments and links?

•            Do you tag external emails to alert employees that the message originated from outside the organization?

•            Do you use Multi-Factor Authentication (MFA) to secure all remote access to your network, including any remote desktop protocol (RDP) connections?

•            Do you use MFA to secure all cloud provider services that you utilize, including Microsoft 365 or Google Workspace?

•            Do you use an endpoint detection and response (EDR) tool that includes centralized monitoring and logging of all endpoint activity across your enterprise?

•            Do you use a data backup solution?

•            Do you record and track all software and hardware assets deployed across your organization?

Fortunately, for Coastline clients, we assist in the completion of insurance questionnaires and can guide you through cybersecurity best practices and help develop a plan to deploy such measures.

If you need an IT partner who can monitor your network 24/7/365 and help guide you through cybersecurity measures, give Coastline Technologies a shout!