Cybersecurity Insurance: Three Considerations for the New Year

As 2021 comes to an end and the industry deals with the Log4j vulnerability, cybersecurity insurance remains a pertinent topic to teams planning their cybersecurity program strategy for 2022. So what do you need to consider when determining whether to invest in cybersecurity insurance and/or how to maximize its value? 

If you’ve read our recent article entitled 10 Cybersecurity Insurance Trends, you know that navigating the upcoming landscape is as complex as the cybersecurity industry itself. Here we will break down the takeaways from our research and expert conversations from Cover the Inevitable with Cybersecurity Insurance: An Expert Panel Discussion webinar into three quick takes to consider as you factor insurance into your program in the future. 

To learn more about how PlexTrac can help you gain a real time view of your security posture — maximizing the value of cybersecurity insurance by improving attestation — book a demo today!

Cybersecurity Insurance as Part of a Comprehensive Security Strategy

Cybersecurity insurance is getting increasingly complex to navigate as breaches and ransomware events increase and insurers become more knowledgeable and wary. That said, it is also becoming increasingly difficult to avoid expensive events for even the most mature cybersecurity program; therefore, cybersecurity insurance can be an important piece of a comprehensive security program. 

Insurers are actively working to understand the threat landscape and can become excellent partners and advisors if you invest in the relationships and resources they offer. No program is infallible, so a multiple pronged approach combining proactive security measures, robust incident response plans, and cybersecurity insurance is a comprehensive strategy worth investing in.

Despite its complexities, insurance can be the extra safety net that helps minimize the cost of the unavoidable breach. The key is to understand the limitations of cybersecurity insurance and how to maximize opportunity for the best premiums and fullest coverage if (when) an event occurs.

The Limitations and Challenges of Cybersecurity Insurance

Avoiding two common misperceptions about cybersecurity insurance will assure it has a proper place in a comprehensive security program: 

  1. Assuming cybersecurity insurance is unnecessary, and
  2. Relying solely on cybersecurity insurance. 

CISOs can struggle to get leadership on board with insurance, in part because of reactive mentalities. The perception, especially for some outside of the security team, is often that a breach is unlikely so proactive investment is unnecessary. Fortunately, recent high profile ransomware attacks are beginning to change this mindset for some. Cybersecurity insurance as part of a multifaceted proactive security program can save a lot of money in the long run. 

Equally faulty is the misperception that cybersecurity insurance is the only proactive measure needed because it will cover everything. The reality is that organizations now must be able to attest to their preventative measures and security posture to qualify for insurance, to maintain their policies, and to receive payout in many cases. 

Maximizing the ROI of Cybersecurity Insurance

The bottomline is that cybersecurity insurance can be an important part of a multifaceted program, but it isn’t a silver bullet. Programs need to be engaging in proactive measures and best practices and need to be able to demonstrate what they are doing so that they can stand up to insurance assessment and qualify for reasonable policies and premiums. The better the visibility into security posture, the quicker and easier it will be for insurers to determine rates and process claims.

If teams can both practice good cyber hygiene and  attest to their efforts, they will be able qualify for better policies and rates and have a clearer understanding of what will be covered if an event occurs. 

PlexTrac can help security programs improve their workflows and gain visibility into their security posture. With PlexTrac, attestation is quick and simple. Whether making a case to leadership that insurance is necessary, outlining the current state of your program to qualify for coverage, or attesting to your state of defenses as part of incident response and the claim process, PlexTrac can help teams of all sizes maximize the value they are getting out of cybersecurity insurance. 

Book a demo of PlexTrac today to learn how it can bring all parts of your security program together, improving effectiveness and efficiency across the teams.

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