Cyber Liability Insurance Webinar

During a recent webinar, Safety Net CEO, Tim Cerny, and Commercial Risk Advisor, Mitchell Blue, from High Street Financial Services emphasize the critical need to create a safety net by investing in advanced cybersecurity and securing cyber liability insurance as a backup.

Importance of a Safety Net for Businesses

Blue starts by highlighting how cyber risks have been rapidly increasing over the years—but the amount of companies investing in cyber liability insurance is not growing at the same pace. He explains that only a third of companies currently have cyber liability insurance, while the rest are left vulnerable to the financial repercussions of a data breach or cyber attack.

Blue also states that cyber-attacks are the third-highest claim type seen by his firm. He compares cyber liability to auto insurance: “If you own a vehicle, you have auto insurance—whether you’re covering physical damage or liability only. But everyone also has a smartphone, a computer, a network…and they have no thought of the fact that somebody could take that information and use it against them.”

However, cyber liability insurance shouldn’t be the only line of defense for businesses. Without a strong foundation of cybersecurity in place, insurance coverage can only do so much. And frankly, a lack of adequate protection could disqualify you for coverage as many cyber insurance companies require cybersecurity before enlisting them.

The Risks of Inadequate Business Security Measures

The most common type of claim Blue sees is a network being hacked with no backup or security processes in place. This exposes businesses to financial loss, legal fees, and damage to their reputation.

Blue tells the story of a client whose business had been unknowingly compromised for months. The client took a vacation and came back to find $60,000 transferred out of their account. They had no idea how the breach occurred—and unfortunately, because they had inadequate security measures in place, they were not able to recover the money.

Blue and Cerny agree that email spoofing was the likely culprit, and that individual training and cybersecurity protocols could have prevented this event.

Detailed Questionnaires Determine Your Cyber Insurance Policy

The development of cyber insurance policies begins with thorough questionnaires designed to evaluate the specific risks faced by a business. These forms typically inquire about the following:

• Amount of unique accounts
• Number of customers
• Level of sensitive data
• Number of computers
• Network security measures
• History of past claims

Blue explains that the cost of cyber insurance is based on the level of risk faced by a business. The higher the exposure to cyber threats, the more expensive the policy will be. He also emphasizes the importance of accurate information. Any discrepancies or oversights could result in a claim being denied, leaving a business with significant financial losses.

How to Protect Your Business: Safety Net’s 4 New Security Services

Blue then turns the discussion over to Cerny. How can business owners best protect their company from cyber risks? Cerny states that unfortunately,  “The gap is widening between [companies] that have implemented best practices and those that haven’t”. Getting additional IT services might not be cost-friendly at first, but the consequences of a breach are worth the extra protection.

First, you have a huge loss of productivity from stolen data and the time spent dealing with a claim. Your insurance premium also jumps—cyber insurance policies for smaller businesses are usually between $1500 and $4500 but can become much higher if a claim is filed.

Cerny explains how beneficial IT services can be by reducing the number of claims and addressing their consequences. To offer additional protection for their clients, Safety Net is introducing four new security services:

• Managed Detection and Response Tools and Services (MDR)
• Third-Party Penetration Testing—Monthly and at No Additional Cost
• Application Blacklisting
• Advanced Techniques to Reduce Email Spoofing (DMARC)

Enhance Your Business’s Security With Professional Services From Safety Net

This insightful webinar serves as a vital reminder for business owners about the importance of preparing for the unknown. A proactive approach can be the difference between daily growth and profitability and disaster.

The best way to build this secure foundation is by partnering with professionals like Safety Net. With our professional cybersecurity services, your business will be equipped to combat potential cyber threats and safeguard your operations for years. Ensure maximum protection for your company by reaching out to Safety Net today.