We’ve written time and time again about protecting your company and its assets from cyber attacks. Threat vectors are multiplying in both form and function while the rise of ransomware-as-a-service should give any business leader nightmares for how accessible it makes carrying out sophisticated cyberattacks to would-be hackers. So what do you do? How do you protect yourself against downside risk for what is almost an assured attack? Cybersecurity is paramount, sure. We preach its gospel monthly. But in the event your cyber defenses are compromised? The answer is cyber insurance.

What is cyber insurance?

While it is relatively self explanatory, it’s worth at least mentioning what cyber insurance is. According to Cisco, an admitted expert in network services, cyber insurance is “an insurance product designed to help businesses hedge against the potentially devastating effects of cybercrimes such as malware, ransomware, distributed denial-of-service (DDoS) attacks, or any other method used to compromise a network and sensitive data. Also referred to as cyber risk insurance or cybersecurity insurance, these products are personalized to help a company mitigate specific risks.”

Do I need it?

Almost assuredly yes. In today’s networked business environment, the likelihood that your business will escape all cyber risk in the next 5 or 10 years is almost nil. Even if you’re not being directly targeted by a specific hacker group, malware and worms without precise targeting instruments can wreak havoc on all sorts of businesses that aren’t related to the original target at all (ask Merck, FedEx, and Maersk who were part of the $10 billion loss associated with the NotPetya worm that leaked out of Ukraine). And if you’re caught in the proverbial cross-hairs (or worse, actually targeted for ransom), cyber insurance can help you put your business back together again without suffering significant losses.

How do I get it?

Much like a homeowner’s policy or auto insurance, there’s an application process. But unlike those, which are generally pretty straightforward, qualifying for cyber insurance is closer to applying for a pricey life insurance policy. You have to undergo all sorts of testing and invasive questions to prove that you’re insurable in the first place. Like with life insurance, it will cost a prohibitive amount of money for a high level of coverage if you smoke, are significantly overweight and present a host of comorbidities. If, however, you are young, athletic, great blood work, low cholesterol, blah blah blah, your policy will be significantly cheaper for the same amount of coverage.

Actuarially, the younger, healthier person is far less likely to die during the term of the policy, meaning the insurance company is less likely to have to pay out on it. The same is true of cyber insurance. If your cybersecurity posture is fragmented, weak or otherwise lacking, you may not qualify for cyber insurance at all. Or, if they will provide it, it could be prohibitively expensive.

The future of cyber insurance

To qualify for a decently priced policy requires a robust cybersecurity posture. Cyber risk insurers analyze the strength of that posture before issuing any policy. The stronger your security posture, the better the coverage available, and, in some cases, increased access to coverage enhancements.

So where does that leave you? Probably talking to someone like us. Managed service providers like Leverage not only provide you with the expertise, tools and guidance to upgrade your cybersecurity posture (without you having to learn every nook and cranny of contemporary cybersecurity protocols), we can ensure that posture complies with any governmental or insurance company’s prerequisites.

Give us a call today and let us show you how we can help keep your business protected from attacks and protected from risk.