How to avoid voiding your cyber insurance
Five ways to check your cyber insurance is valid
In 2022, almost half of UK businesses reported having insurance in place to protect against cyber-attacks. However, many unknowingly do things that could void their policy leaving them financially unprotected.
Whether you already have a cyber insurance policy, or you still need to put one in place, check these five points to keep your business covered against attacks.
1. Encrypt your data
Many insurers will ask you to encrypt your data. This means using an algorithm to encode or ‘scramble’ information to make it look like nonsense to anyone who doesn’t have permission to see it. Your IT provider should be able to help if you don’t already have data encryption. If you use a cloud provider, you should check how they encrypt your data as this might void your insurance too.
2. Keep security patches up to date
Cybercriminals are constantly adapting and evolving to work around cybersecurity systems. Luckily, cybersecurity companies are constantly looking for intelligent ways to keep them out. But their solutions can only do their job if you keep your systems up to date, so it’s essential you make sure you regularly update your cybersecurity system to run the latest, most secure version. If you need to make a claim and your system isn’t up to date, your cyber insurer may not pay out.
3. Follow password protocols
Some cyber insurers have rules and guidance on what makes a password secure. They might specify features like password length, composition, how often you change them, and changing default passwords. Check you’re complying with their recommendations to stop your policy from becoming invalid.
4. Present your data management procedures accurately
Your data management procedure covers topics like the above points, and additional ones like data storage, back-up arrangements and employee training. Make sure you’re honest about what these are so you get the right cover in place. And if you notice any security weaknesses that you fix them promptly.
5. Install firewalls
Many cyber insurance policies will ask you to have firewalls installed on all your employees’ devices. Firewalls block cyberattacks and malware when you or your team is using the internet, which can make you vulnerable to online attacks. Firewalls monitor unwanted traffic to your network and form a barrier between your business’s computers and cybercriminals.
Have a question about your cyber liability insurance? Our IronMarket Risk Mentors can help you to understand your current cyber policy.
