Cyber Insurance: Protecting Your Business from the Effects of Cybercrime

In recent years, businesses have been dealing with a rising number of data breaches and cyber-attacks that pose significant threats to their employees, customers, and mission-critical data. These attacks are becoming increasingly sophisticated and costly, with data breach costs rising at a rate of 10% annually. To make matters worse, experts predict that cybercrime will cost the global economy a staggering $10.5 trillion per year by 2025, meaning that no business--big or small--is safe from these dangers.

To protect your organization against such threats, a comprehensive cybersecurity plan is crucial, with cyber liability insurance being a critical component. While some companies have seen this type of insurance as an unnecessary expense, it is now widely accepted as a necessary element for all organizations. However, many businesses are still unaware that cyber risk is insurable and that there are flexible and customizable coverage options available to meet the needs of a wide range of organizations. 

To ensure your business understands the value of these policies, let's dive deeper into what cyber insurance is, why businesses need it, and how Telesystem's cybersecurity solutions can assist in qualifying for it. 

What is Cyber Insurance?

In today’s digital age, cybercrime is a growing threat to businesses of all sizes. Cyber insurance, also known as cyber risk insurance, is a specialized form of insurance designed to protect businesses from the potentially catastrophic effects of cyber-attacks. These attacks can include malware, ransomware, distributed denial-of-service (DDoS) attacks, and other techniques used to compromise networks and sensitive data.

Similar to insurance that businesses obtain against natural catastrophes and physical threats, cyber insurancecoverage protects against the losses a company may incur due to a cyber-attack. Policies typically cover costs that are directly associated with a security breach, such as documentation and investigating of the attack, data recovery, hardware repair, consumer/regulatory agency notification, crisis management, and PR damage control. 

Depending on your provider, cyber insurance plans may also offer additional forms of first-party and third-party coverage; for example, you may be eligible for reimbursement of the income lost by your business, or coverage of fines, legal fees, and settlements due to the breach. The amount of protection your company needs depends on your line of business, whether you store and process sensitive data, and how rigorous your cybersecurity measures are, among many other factors.

Why is it important?

Cyber insurance is becoming increasingly crucial for all businesses as the danger of cyberattacks against applications, devices, networks, and users escalates. According to a report by the Statista Research Department, data breaches exposed around 15 million records during the third quarter of 2022, a 37% increase from the previous quarter. Cybercrime has continued to rise in 2023, and the resulting compromise, loss, or theft of data may devastate a business, leading to consequences including the loss of customers, reputation, and income. Without the security net offered by cyber insurance, the consequences of malware outbreaks or data theft can be catastrophic, rendering a business incapable of recovery.

Recently, Estée Lauder, the second-largest global cosmetic company, fell victim to a cyberattack. As a result, it is projected to suffer a staggering $300 million loss in quarterly sales. The company acknowledged that its lack of investment in technology over the years had made it vulnerable to such attacks. 

Although large corporations are often targeted by cybercriminals, small businesses are vulnerable to attack as well. 

Why Cyber Insurance is also important for small businesses 

Small-to-medium sized businesses (SMBs) are not immune to cybercrime. In fact, about 60% of SMBs reported being attacked in the past 12 months. However, many business owners do not see the need for cyber insurance, believing that their information is not worth stealing or they are not susceptible to an attack. All businesses, big or small, hold data that cybercriminals are after, such as employee and customer information, bank and credit card data, and more.

The effects of cyber-attacks can be devastating financially, with a report finding that SMBs can lose anywhere from tens of thousands to millions of dollars due to a data breach. Investing in a cyber insurance policy can allow business owners to keep their operations running after an attack; this ensures customers that their well-being and privacy are priorities for the company. The premiums for such a policy cost only a fraction of the damages from a cyberattack, making it a worthwhile investment for any business that relies on technology such as email, electronic records, computers, phones, and tablets.

What you need in order to qualify for cyber insurance

When it comes to getting cyber insurance for your business, underwriting can be a critical piece of the puzzle. This process helps providers establish premiums, coverage limitations, and eligibility for coverage. Depending on your business's size, this could range from a simple questionnaire to a thorough investigation by a cybersecurity firm. And it doesn't end there - regular check-ups and reassessments can also be part of the routine.

Of course, in order to qualify for cyber insurance, you need to meet certain IT security standards. This shows that your risks are at an acceptable level. At Telesystem, we understand how important it is for your business to be successful. That's why we've created solutions that meet all of the necessary cyber insurance requirements. Here are the main requirements to qualify for cyber insurance:

• Security Awareness Training:  Highly recommended that all members of an organization go through routine security awareness training. 

Telesystem’s Security Awareness Training is designed to teach employees and managers how to recognize electronic break-in attempts. By conducting thorough cybersecurity awareness training, we will educate your staff on risks such as spam, phishing, malware, ransomware, social engineering, and more. This training lowers the likelihood of employees making common mistakes that give hackers access to valuable data and system programs. 

• Endpoint Antivirus Protection: All laptops/ computers must be equipped with antivirus software and it must be kept up to date.

Telesystem’s Endpoint Protection is a comprehensive IT platform that effectively secures business users and their data while improving system efficiency and reliability. Our proactive whitelist security stack approves a list of email addresses, IP addresses, domain names, or applications while rejecting all others, hereby optimizing your cyber infrastructure. 

• Zero Trust: User access rights and permissions must follow a secure provisioning process.

The zero-trust security approach assumes that all associated devices and identities in any environment, whether a physical server or a cloud service, are not secure until they have been confirmed as such. With FortiClient ZTNA by Telesystem, all participants are blocked until they are authenticated via automatic encrypted tunneling, allowing administrators to conduct real-time investigations of each session's application access.

• Managed Security Solutions: Admin and other privileged accounts must be secured using multi-factor authentication.

Telesystem offers comprehensive Managed Security solutions to predict, prevent, detect, and respond to threats across your entire business. Our Security Operations Center (SOC) analyzes over 6 billion logs every day. This will allow your company to focus on its day-to-day activities to drive business growth and leave the cybercriminals and technology to the experts.

• Managed Firewall: The company network must be protected using a firewall.

Telesystem Managed Firewall delivers the industry’s fastest application identification and steering for efficient business operations and accelerates IPsec VPN performance for best user experience on direct internet access. Enable best of breed NGFW Security and Deep SSL Inspection with high performance, all setup and managed by Telesystem Professionals.

In addition to cybersecurity solutions, Telesystem also offers Cybersecurity Consulting services and conducts risk assessments. Our team of cybersecurity experts will guide you in setting up essential cybersecurity measures and identify any vulnerabilities that may exist within your business. Our experts will work closely with you to develop a customized cybersecurity strategy tailored to your specific needs and industry regulations. With Telesystem's Cybersecurity consulting services, you can rest easy knowing that your business is well-prepared and protected against potential cyber-attacks.

Telesystem is Here for Your Corporation

When it comes to protecting your business from cybercriminals, cyber insurance and cybersecurity measures work best when used together.  Cyber insurance can be a helpful addition to your security strategy, but it's not a stand-in for comprehensive protection. At Telesystem, we understand that balancing it all can be overwhelming. That's why we've developed tailored solutions to make it easier for you to qualify for cyber insurance while also safeguarding your business against cybercriminals.

Our team of experts will work hand-in-hand with you to assess your current security posture, identify vulnerabilities, and implement robust security measures. We'll provide ongoing monitoring and support to ensure your business stays protected against cyber threats. By partnering with Telesystem, you can rest easy knowing that you have a strong countermeasure in place against cybercriminals and are qualified for cyber insurance coverage. Don't let the fear of cyberattacks hold you back - let Telesystem help you stay secure and meet your insurance requirements.