Learn about the fundamental cyber security requirements SMBs must meet to qualify for cyber insurance coverage. Protect your business against cyber threats and meet the standards set by insurance providers to ensure comprehensive protection.
Taylor Maguire
Jun 5, 2023
The Importance Of Cyber Insurance For SMBs
Cybersecurity is crucial for businesses of all sizes, including small and medium-sized ones (SMBs), who face increasing cyber threats. To address this, cyber insurance plays a vital role.
Also known as cyber liability or data breach insurance, it helps organizations handle financial burdens and potential liabilities resulting from cyber incidents like data breaches, ransomware attacks, and business interruption.
While robust cybersecurity measures are important, cyber insurance acts as a safety net, covering costs related to breaches, fines, legal fees, customer notifications, and reputational damage. For SMBs, cyber incidents can be devastating, leading to significant disruptions or closure. Cyber insurance mitigates these risks by providing financial assistance and expert guidance.
Basic Cybersecurity Requirements For Cyber Insurance
Insurance carriers are now placing increasing importance on the implementation of basic cybersecurity practices as a prerequisite for coverage eligibility. While these requirements may vary among carriers, adhering to them is crucial to accessing the widest range of coverage options at the best prices. It is important to note that these basic requirements primarily apply to smaller and lower-risk organizations.
Email Security
Enable Multifactor Authentication (MFA) for all email system users
Recommended but not required: Implement an email protection solution for pre-screening incoming emails
Endpoint Security
Recommended but not required: Implement an endpoint detection and response (EDR) solution
Network Security
Implement Multi-factor Authentication (MFA) for all administrative access and remote access
Security Awareness Training
Recommended but not required: Conduct security awareness training for all employees at least once a year
Recommended but not required: Provide annual training for executives and key accounting personnel on fraudulent transfer schemes
Backups
Implement off-site or cloud backups for all critical data and systems
Ensure that critical systems, applications, and processes can achieve recovery within 10 days or less
Recommended but not required: Utilize backups that perform continuous testing of restore capabilities to a virtual machine
Recommended but not required: Utilize "immutable backups" that are resistant to changes
Patching
Recommended but not required: Implement a formal patching cadence of 30 days, ensuring that critical and zero-day patches are applied within seven days
Encryption
For retailers, restaurants, or online retailers, it is necessary to deploy end-to-end or point-to-point encryption on all point-of-sale (POS) terminals
Recommended but not required: Ensure that all sensitive information is encrypted while at rest
Recommended but not required: Implement encryption for all sensitive information stored on mobile devices and laptops
Processes and Procedures For Wire And Funds Transfers
Establish controls mandating that all funds and wire transfers exceeding $25,000 require authorization and verification by a minimum of two employees prior to execution
Recommended but not required: Implement measures to prevent unauthorized employees from initiating wire transfers
Recommended but not required: Before adding vendors/suppliers to the accounts payable systems, ensure proper verification of their bank accounts
Recommended but not required: Before executing any electronic payments, require out-of-band authentication for added security
Partnering With Qualified Cybersecurity Professionals
While implementing cybersecurity measures is crucial for meeting insurance requirements, SMBs can greatly benefit from partnering with qualified cybersecurity professionals such as Managed Service Providers (MSPs) or cybersecurity consultants. These professionals bring expertise and experience that can enhance a business's cybersecurity posture and help meet the necessary insurance requirements.
MSPs and cybersecurity consultants can provide invaluable guidance in meeting the specific cybersecurity requirements set by insurance providers. They understand the nuances of these requirements and can assist SMBs in implementing the necessary security controls, policies, and procedures.
When selecting an MSP, it is essential to choose a reliable and trusted provider. Empyrion Technologies stands out as a leading MSP with a proven track record of delivering exceptional cybersecurity solutions to businesses of all sizes. With their years of experience and a dedicated team of experts, Empyrion Technologies can provide the comprehensive support and tailored solutions necessary to meet insurance requirements and ensure robust cybersecurity for your business.
