How Cybersecurity Insurance Protects Your Business and Why You Need a Security Audit

In business, lost time is lost revenue. A cyber attack is not only a costly setback — it can destroy your reputation. A predatory attack on your business can target your entire operations or a specific function, from vendors to customers and everything in between. You rarely see it coming and without protection, a cyber attack can easily disrupt, disable, destroy, or maliciously take control of your IT environment.

Not understanding the vulnerabilities that exist in your company’s IT environment is a significant liability. Cyberattacks have become increasingly more sophisticated, targeted, and financially devastating.


What is Cybersecurity?

Cybersecurity is the practiced strategy of providing high-level protection to networks, devices, and data from unlawful access or criminal use. But it’s also the practice of guaranteeing confidentiality, integrity, and accessibility of information across all aspects of your IT environment.

You’ve undoubtedly heard the term ‘hacker,’ which has become ubiquitous with malicious intent. But broadly, it defines someone skilled in information technology who is capable of using their technical prowess to overcome an obstacle within an IT environment by non-standard means.

Both criminal actors and law enforcement agencies sometimes use hacking techniques to surveil individuals and organizations or collect evidence using anonymity tools such as VPNs or the dark web to conceal their identities online. They often pose as criminals. Recently, hacktivist (hacker activist) organizations have caused crippling damage to even the most robust IT environments.

While a cybersecurity event might seem like something that happens to someone else, society’s increasingly expanding digital footprint leaves almost no sector immune to the potential threat of a cyber event. An attack can exploit an individual or organization, expose sensitive information or data, or even lockout data for ransom, such as the WannaCry Attack. Every home, business, coffee shop — anywhere with Wi-Fi — is an open door to your most prized possession, your information.

Where There is Weakness, There is Opportunity

Banking, communication, transportation, national defense, local governments, restaurants, healthcare systems — the list goes on. Every aspect of our world is sustained by an invisible IT environment that works in concert to keep information circulating and businesses operating. You might believe your business or personal information is stored safely on your smartphone, tablet, or computer, but standard security features won’t always keep you safe.

Understanding what you don’t know about cybersecurity is an essential part of keeping your information safe. Taking a technologically agnostic approach to your cybersecurity efforts means leaving no stone unturned and not limiting your security operations to a particular solution, technology, or vendor.

What is Cybersecurity Insurance?

Cybersecurity insurance originates from Errors and Omissions (E&O) Insurance, which is designed to protect businesses against claims of mistakes, negligence, inadequate work, inaccuracies, misrepresentation or similar claims. Cybersecurity insurance is a more robust and targeted safety net that provides peace of mind in case of a malicious event.

While good company security practices and good IT hygiene help to mitigate these attacks, having insurance coverage means your business is protected from any financial losses caused by cyber incidents, including data breaches, theft, system hacking, ransomware extortion payments and even, denial of service.

Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract an entity can purchase to help reduce the financial risks associated with doing business online. In exchange for a monthly or quarterly fee, the insurance policy transfers some of the risks to the insurer,

  • Defense against regulatory fines and privacy lawsuits
  • Lost revenue and data recovery costs due to a breach or extortion threat
  • Breach response resources when an attack occurs
  • Capital funds lost due to a fraudulent instruction by a third party

Companies that purchase cybersecurity insurance today are considered early adopters and have taken the necessary precautions to protect themselves against threats including:

  • Phishing
  • Malware
  • Man-in-the-Middle (MitM) Attacks
  • Denial-of-Service (DOS) Attacks
  • SQL Injections
  • Zero-Day Exploit
  • Password Attack
  • Cross-site Scripting
  • Rootkits
  • Internet Things of Attack

According to the Cisco Annual Cybersecurity Report, all organizations need a proactive technology strategy to stay up-to-date with the best available IT and security technologies. These technologies work together to ensure swift and effective incident response, while accurately detecting threats and identifying potential blind spots. Your business’ recovery capabilities should not only minimize impact but ensure the resiliency of your business when an attack occurs.

Why a Cybersecurity Audit is Necessary

A cybersecurity audit is used to determine a company’s cybersecurity weaknesses and determine the level of risk. Insurers generally require a security audit before businesses can qualify for cybersecurity insurance coverage. Through a remote penetration test, the firm conducting the audit detects vulnerabilities, threats, and high-risk practices. They then provide a report back to the insurer.

Are you ready to safeguard your business against the unexpected with cybersecurity insurance? Reach out to Nettology today and schedule a security audit with one of our IT experts!


Tags: Cybersecurity Risk Assessment