Insurance agencies handle sensitive data like personal information, financial records, and client information daily. It is very important that this data is protected from cyber threats to maintain the trust and confidence of your clients, and ensure the security and stability of your business.
As companies move more of their operations online, they face new cybersecurity risks. To protect themselves, many US businesses are turning to cybersecurity insurance.
In this article, we will discuss the importance of protecting against cyber threats, the best practices for cybersecurity, and how to respond to a cyber attack. Let’s get started!
Table of contents
What Cybersecurity Insurance Covers?
Businesses face a range of financial risks from cyber incidents, which is where cybersecurity insurance comes in. Such policies typically provide first-party and liability coverage.
First-Party Coverage
This type of coverage helps businesses financially recover from cyber incidents such as data breaches and ransomware attacks. This can include the cost of responding to a data breach, restoring and recovering lost or damaged data, lost income resulting from business interruption, ransomware attack payments, and risk assessment of future cyberattacks. Most policies also cover the cost of informing customers about the incident and providing clients with anti-fraud services.
Liability Coverage
This provides financial protection against lawsuits filed by third parties, including customers, employees, and vendors, for damages caused by a cyberattack on the business. Policies typically cover court and settlement fees, and regulatory fines.
The Best Cyber Security Insurance Companies
When it comes to protecting your business from cyber risks, having the right insurance coverage is essential. Several insurance companies offer cyber liability insurance policies to help businesses mitigate cyber threats and recover from cyber incidents.
The best insurance companies for cyber security provide comprehensive coverage, including first-party loss and third-party liability, reputational harm, media liability, data recovery, and cyber incident response. They also offer a range of limits to meet different business needs and excellent customer service, as well as online shopping platforms for easy policy purchase.
| Company | Cyber Insurance Name |
|---|---|
| Hiscox | Cyber Security Insurance |
| Chubb | Cyber Enterprise Risk Management |
| AIG | CyberEdge |
| The Hartford | CyberChoice |
| CNA | Cyber Insurance |
| Arch Insurance | Arch Netsafe 2.0 |
| Hanover | Cyber Advantage |
| Intact | Privacy Breach Coverage |
| Axis | Axis Cyber Insurance |
The Importance Of Protecting Your Business From Cyber Threats
As an insurance broker, I know that in today’s ever-growing digital age, cyber threats are becoming an increasingly normal aspect of our digital society. Cyber attacks can have serious consequences, including financial losses, legal liabilities, and damage to a business’s reputation.
For an insurance agency, the consequences of a cyber attack can be especially severe, as you handle sensitive and confidential data on a daily basis.
The Impact Of Cyber Attacks On Businesses
Cyber attacks can have a wide range of impacts on businesses, including:
Financial Losses: Cyber attacks can result in direct financial losses, such as the cost of recovering from an attack or paying a ransom. In addition, a cyber attack can disrupt business operations and result in lost revenue.
Legal Liabilities: Depending on the type of data involved, a cyber attack may result in legal liabilities, such as fines or legal action.
Damage To Reputation: A cyber attack can damage a business’s reputation, as customers may lose confidence in the security of the business’s systems and data.
Types Of Cyber Threats To Be Aware Of
There are many different types of cyber threats that businesses need to be aware of. Some common types of threats include:
Malware: Malware is software designed to harm or exploit computer systems. This can include viruses, worms, Trojans, and other types of malicious software.
Ransomware: Ransomware is a type of malware that encrypts a victim’s files, making them inaccessible until a ransom is paid to the attacker.
Phishing: Phishing involves sending fake emails or texts that appear to be from legitimate sources, in an attempt to trick individuals into giving out sensitive information or clicking on malicious links.
Denial Of Service (DoS) Attacks: A DoS attack involves overwhelming a server or network with traffic, rendering it unavailable to users.
Man-In-The-Middle (MitM) Attacks: A MitM attack involves an attacker intercepting and manipulating communication between two parties.
- SQL Injection Attacks: An SQL injection attack involves injecting malicious code into a database through an SQL query, in an attempt to access or manipulate sensitive data.
Best Practices For Insurance Agency Cybersecurity
As an insurance professional, I can tell you there are several best practices you can implement to ensure your insurance agency is protected against cyber threats. These practices can help to protect your network and devices, safeguard sensitive data, and train employees on how to recognize and avoid cyber threats.
Protecting Your Network and Devices
Here are some best practices for protecting your network and devices:
- Use Strong Passwords And Change Them Regularly: Strong passwords are difficult for hackers to guess or crack and can help to protect your systems and data. Be sure to change your passwords regularly to further enhance security.
- Enable Two-Factor Authentication: Two-factor authentication adds an extra layer of security by requiring a second form of identification, such as a code sent to a phone or an authentication app, in addition to a password.
- Install And Update Security Software: Security software, such as antivirus and firewall programs, can help to protect your systems and data from cyber threats. Be sure to keep this software up-to-date to ensure that it is effective.
- Keep Your Devices And Software Up-To-Date: Cyber threats are constantly evolving, and it is important to keep your devices and software up-to-date with the latest security patches and updates.
Safeguarding Sensitive Data
In addition to protecting your network and devices, it is important to take steps to safeguard sensitive data, such as personal information, financial records, and client information. Here are some best practices for safeguarding sensitive data:
- Use Encryption: Encrypting data makes it difficult for unauthorized parties to access or read it. Consider encrypting sensitive data when storing it or transmitting it over the internet.
- Use Secure Servers: Use servers that are secure and compliant with industry standards, such as the Payment Card Industry Data Security Standard (PCI DSS) for credit card data.
- Use Secure File Transfer Protocols: When transferring files over the internet, use secure protocols such as Secure File Transfer Protocol (SFTP) or Secure Shell (SSH) to protect the data.
- Limit Access To Sensitive Data: Restrict access to sensitive data to only those individuals who need it for their job duties.
- Implement Data Backup And Recovery Procedures: Implement a data backup and recovery plan to ensure that you can restore data in the event of a cyber attack or other data loss.
Responding To A Cyber Attack
Unfortunately, despite your best efforts, you may not be able to protect your agency from a cyber attack. As an insurance professional, I advise that you know how to respond to a cyber attack just in case. It is better to be prepared to handle a cyber attack that never happens, than being unprepared to handle one when it does.
In the event of a cyber attack, it is important to have a plan in place for responding effectively.
Steps To Take In The Event Of A Cyber Attack
If you suspect that your business has been the victim of a cyber attack, here are some steps to take:
- Disconnect From The Internet: Disconnecting from the internet can help to prevent the spread of the attack and protect your data.
- Assess The Situation: Determine the extent of the attack and the types of data that may have been compromised.
- Notify Authorities: Report the attack to the appropriate authorities, such as law enforcement or cybersecurity experts.
- Notify Affected Parties: If customer data has been compromised, it is important to notify affected parties as soon as possible.
- Take Steps To Prevent Future Attacks: Once the immediate threat has been addressed, work with cybersecurity experts to implement measures to prevent future attacks.
Best Practices For Responding To A Cyber Attack
Here are some best practices for responding to a cyber attack:
- Have A Response Plan In Place: It is important to have a plan in place for responding to a cyber attack, so that you know what steps to take in the event of an attack.
- Train Employees On Cyber Attack Response: Make sure that your employees know what to do in the event of a cyber attack, so that they can respond effectively.
- Work With Cybersecurity Experts: Cybersecurity experts can provide valuable guidance and support in the aftermath of an attack.
- Review And Update Your Cybersecurity Protocols: After a cyber attack, take the time to review and update your cybersecurity protocols to help prevent future attacks.
Conclusion
As an insurance broker, I know that insurance agencies handle a lot of sensitive information and this may make them an appealing target for cyber attacks. It is important you take the necessary steps to protect your insurance agency and consumers from a cyber threat. In the event of a cyber attack, be sure to follow the response steps listed in the article to keep your agency as safe as possible.
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Resources For Further Information On Insurance Agency Cybersecurity
For more information on insurance agency cybersecurity, we recommend the following resources:
- National Association Of Insurance Commissioners (NAIC): The NAIC has a range of resources on cybersecurity for insurance agencies, including best practices, risk management tools, and guidance on responding to a cyber attack.
- Cybersecurity And Infrastructure Security Agency (CISA): CISA is a federal agency that provides guidance and resources on cybersecurity for businesses of all sizes.
- Insurance Information Institute (III): The III has a range of resources on insurance agency cybersecurity, including best practices, risk management tools, and guidance on responding to a cyber attack.
