Business owners often think cyber liability insurance completely solves their security problems. In fact, they buy a policy and assume their company is perfectly safe. However, the insurance industry has changed greatly over the last few years. Consequently, buying a policy no longer guarantees a payout after a ransomware attack. Therefore, to keep your coverage valid, you must prove you maintain strict cybersecurity standards.
If you ignore your network security, your insurance carrier will likely deny your claim. As a result, they will leave you to pay the huge ransom out of your own pocket.
The End of Easy Insurance Approvals
Insurance carriers lose billions of dollars to cybercriminals every single year. Because of this, they no longer hand out cheap policies to anyone who asks. Today, providers demand detailed tech reviews before they even approve your application.
If your network lacks basic defenses, carriers will instantly reject your coverage request. After all, they view unprotected businesses as huge financial risks. Instead, you must actively show that your network blocks modern cyber threats.
Three Mandatory IT Controls You Need Today
Specifically, you must implement clear technologies to qualify for modern cyber insurance. For example, insurance auditors look for these three critical defenses immediately:
- Multi-Factor Authentication (MFA): First, you must enforce MFA on every single company account. Additionally, you cannot skip frontline workers or third-party contractors.
- Immutable Data Backups: Second, you must maintain secure, offsite backups. Furthermore, these backups must be “immutable.” Basically, this means hackers cannot alter or encrypt your safety net under any circumstances.
- Continuous Network Monitoring: Finally, standard antivirus software no longer meets strict insurance rules. Indeed, carriers expect you to utilize 24/7 Remote Monitoring and Management (RMM) tools.
The Danger of Lying on Your Questionnaire
Many business owners rush through their yearly insurance renewal forms. Unfortunately, they accidentally check “yes” to having full MFA when they only enforce it for executives. Consequently, this simple mistake creates a massive financial disaster.
If a breach occurs, the insurance agent will check your actual network setup. Ultimately, if they find your network does not match your application, they will deny your claim entirely. Therefore, you must answer every compliance question with complete accuracy.
Get Compliance Ready with 1st Rate I.T. Services
Dealing with complex insurance rules takes expert tech skills. Simply put, you cannot afford to guess your way through a compliance audit.
At 1st Rate I.T. Services, we handle this stressful process for you. Our team deploys the exact security frameworks that insurance carriers demand. Moreover, we ensure your business meets every strict standard before you sign your renewal paperwork. Ultimately, our support gives you total peace of mind.
Are you struggling with a cyber insurance renewal? Submit a ticket or call us 24/7/365 at +1 (855) 783-TECH to schedule a professional IT compliance audit today.