It is easy to look at world affairs and assume they are happening in another country. However, they do not directly relate to our business. We can’t simply watch the world, but we must also understand how they affect us. Cybersecurity is being affected by world events.

World Event Possibilities for Security Risks

However, world events can have potential security implications and affect how we do business. We can no longer passively observe world affairs, nor take a bury-your-head-in-the-sand approach — these approaches are short-sighted. When it comes to cybersecurity threats and business security, proactive action is necessary.

Cyber-attacks are on the rise and anyone with an Internet connection can be a victim. It is no longer a question of whether an attack will occur; it is a matter when a bad actor might target your company.

Low-Profile Businesses are the Low Hanging Fruits, Ripe for Cyber Infestation

Cyber-attacks are often the focus of media attention when they affect high-profile companies. However, they are also important for companies to be aware of “lower-profile” incidents. Cyber-attacks can pose a serious problem for all businesses, regardless of their size or type. Many companies fail to keep cyber-infiltration in mind despite regular headlines.

Criminals have always targeted businesses and people.

It’s no secret that criminals and bad actors have always targeted businesses in this country and around the world. Today’s criminals, The ( black hat cybers ), have learned a lot from the past and are getting better at what they do.

The FBI estimates that there are over 4,000 ransomware incidents each day in the United States. These ransomware attacks don’t make the news.

These attacks didn’t slow down during the COVID-19 pandemic, but rather accelerated. It doesn’t look like they will stop anytime soon. It is a well-known fact, that economic hardships in any sector will lead to more crime. Cybercrime and attacks are no exception. 

Pay attention to data breaches

The Identity Theft Resource Center’s 2021 Annual Information Technology Breach Report showed that ransomware-related data breaches have doubled over the past two years. Ransomware attacks may surpass phishing in 2022 as the leading cause of data breaches.

Businesses are taking more proactive measures to safeguard themselves. They can do more to protect their company’s operations.

Why do Companies Need Cyber Insurance?

Many cybersecurity experts predicted that bad actors could launch cyberattacks around the world, particularly in the United States. Although their targets may not be known, businesses and individuals should not leave their safety at risk.

Many companies mistakenly believe that bad actors won’t target their company. They may think they have a small team or are not well-known enough to be targeted.

Previous cyber-attacks have demonstrated that hackers tend to start small. Cybercriminals will often target a company that isn’t taking its security seriously enough to cause an initial breach. Cybercriminals then use small successes to increase their chances of reaching larger targets.

Who will find and exploit your business’ weaknesses?

No one is completely protected. You want to protect your clients, customers, and business. Bad actors will exploit every customer’s weaknesses.

Hiscox an international specialist insurance company, estimates that around 25% of small businesses have suffered at least one cyberattack within the last year. A small business’ average financial loss was greater than $25,000.

Cyber Insurance is a great option for homeowners and car insurance.

In recent years, the cyber insurance industry has seen a rise in popularity. Insurance Business reports that what was a $7.8B industry in 2020 could increase to $20B by 2025.

Many companies have general liability insurance policies. However, they may not be aware that cyber risks are excluded from these policies.

Cyber risks are often not covered by traditional insurance policies. Companies need to have a separate policy in order to protect against cyber-attacks or breaches.

How does Cyber Insurance differ from regular insurance?

Insurance companies have also changed their approach to cyber security threats and ransomware attacks. Make sure you read every policy and understand what you’re buying.

Cyber Insurance protects businesses against cyber-based and IT infrastructure risks and activity risks. These risks are typically excluded from traditional commercial general liability policies. Cyber Insurance is not usually covered by traditional insurance products.

Buy a Cyber-Specific Insurance

Although cyber-specific policies have been developed by insurance providers, many companies won’t just offer a policy. Companies must typically meet certain criteria in order to be eligible for coverage. Policyholders must also maintain their eligibility each year.

Companies may also be allowed to renew their policies at specific times. Although dates can vary between insurance providers, the key renewal dates for cyber-insurance may be July 1 or August 1.

It may sound like double-talk and buyer beware, but insurance seems to have moved in this direction. Pay attention to your policy and ask for exactly what you need. Then, read the policy to make sure you get what you asked for.

How can a company get cyber insurance?

Cyber insurance is essential for every business, regardless of whether it’s e-commerce or retail, state and local governments or professional services. While many organizations might have IT professionals, they may not necessarily be cyber security experts.

Companies need to be aware of warning signs, keep up with the risks and prepare for them.

Companies are becoming more aware of cyber risk as news outlets regularly highlight high-profile attacks. Unfortunately, many companies are unaware of their vulnerability until it is too late.

A third of U.S. citizens have cyber insurance. Cyber insurance is available to businesses

Good news is that insurance companies are responsive to the need and offer needed coverage. According to the Hiscox cyber readiness report 2021, around a third of U.S. businesses have a standalone policy for cyber insurance.

Companies will be required to obtain a third party assessment, such as a cybersecurity gap assessment or risk assessment by insurance companies in order to make sure they are following the “block and tackle” principles.

All companies may not be covered by insurance providers.

Companies that fail to meet the minimum standards for cyber defense and preparation may be denied insurance coverage. Providers may have slightly different criteria.

Cyber insurance coverage can cover data destruction, extortion and theft, hacking and denial-of-service attacks. The coverage can protect companies against lawsuits and other liabilities.

Companies could be covered for damages caused by defamation, or failure to protect data. Additional benefits include reimbursement for security audits and criminal rewards as well as investigation expenses.

Cybersecurity starts with taking action.

Security frameworks have been issued by many government agencies and industry organizations, including NIST (National Institute of Standards and Technology). These frameworks often contain industry-specific standards such as the payment card industry (PCI), Family Educational Rights and Privacy Acts (FERPA) and the 1996 Health Insurance Portability and Accountability Act of 1996.

Companies are becoming more concerned about their IT hardware and computers. However, it is not their main focus. These protocols can be confusing and many companies don’t know where to begin the process so they don’t take action.

The biggest mistake a company could make is to not act.

Businesses don’t have to do it all. They can partner with experts who can identify vulnerabilities and help them plan their response. Businesses can take steps to improve their readiness for cyberattacks.

Third-party companies that are trustworthy can perform such an assessment and offer many services similar to those offered by insurance companies. These assessments can also be used to help companies get lower premiums.

Endpoint Detection, Endpoint Detection, Encrypted Backup, Implement MFA and Encrypted Backup are all available from Implement MFA

Multi-factor authentication (MFA), encryption backups and endpoint detection (EDR) are all important components of organizational security. Hybrid work is becoming the norm, and it will be a growing issue that requires security awareness training.

Nearly 90% are the result of human error.

User training is crucial to teach teams how to maintain cyber hygiene and identify potential cyberattacks via email or the internet.

Continuous training is better than once-a-year training to keep cyber best practices in mind for employees.

Cybersecurity experts don’t have to be your only job.

It doesn’t take everyone to be a cybersecurity expert in order to act. They must begin with the basics like ransomware training programs.

Companies can use a gap assessment to help them understand where they should start. Cybersecurity renewals are crucial and require validation by a third party.

Cybersecurity is often a matter of best business practices.

The world is becoming more dangerous. People who wish to harm others will continue to improve their methods. This puts the onus on all businesses to work together to plan for unforeseeable dangers.

Nobody can predict when or where an attack will occur.

However, every company has the ability to prepare their defense, which is the most crucial element in a cyber-attack.

It is no longer a luxury to act. Preparing defenses is an essential business decision that must be taken now. Your business will need to be protected as the world gets worse.

By Manali