Cybersecurity insurance has become something that all businesses that use computers and the internet need to apply for. Cyber crime has continued to increase and the average cost for a small business is $120,000 in 2021 compared to an average cost of $34,604 in 2018. As the cost of a breach rises, companies need insurance to help cover the cost of a breach.
There are many checks the insurance company will conduct to determine the likelihood they will offer a policy, determine the policy premium and deductible. Most insurance companies will run an external scan to determine the number of vulnerabilities and severity level. This will provide insight into a business’s security hygiene based on the results. In addition to the external scan, the insurance company will send out a questionnaire that will ask questions about security tools and policies that are implemented within the organization. Recently, insurance companies are asking for product names and will no longer accept a Yes/No answer since all products are different. The insurance companies are looking to see if best of breed products are being used.
IronEdge can assist in various ways to help in obtaining Cybersecurity insurance. IronEdge will assist in completing the insurance questionnaire and address questions from business leaders. For Managed Service clients, IronEdge enrolls businesses in a regular patching schedule to patch internal/external vulnerabilities. IronEdge uses some of the best of breed security products. We recently rolled out a Zero Trust application and in the process of rolling out a new NextGen Anti-Virus and threat-hunting tool. With patching and the security tools and recommendations we provide, we help in ensuring the scans and questionnaires insurance companies conduct offer the best possible results to assist our clients insurability.
Because IronEdge deals with multiple insurance companies, we are able to stay in front of insurance company trends and advise our clients to new trends we see. We also use this information to constantly evaluate our tools and products we offer from a security perspective. One trend we have seen over the past several years is an increase in premiums and raising deductibles. A September 2021 stat from ALTA (American Land Title Association) shows premiums increased 25.5% during Q2 of 2021. We are expecting to see it become more difficult to even be insured in the coming couple years.