CYBER INSURANCE

IS YOUR SMALL BUSINESS ONE CYBERATTACK AWAY FROM DISASTER?

Why small businesses should invest in cyber insurance

Let's be honest. As a small business owner, you're busy. You're focused on serving your customers, managing your team, and making sure the lights stay on.

Cybersecurity probably feels like something only the "big guys" need to worry about, right? Unfortunately, this is not the case.

In today's digital world, every business, no matter its size, is a target. And the cost of a cyberattack can be devastating for a small operation like YOURS.

You don't have to navigate these threats alone; Partner with Threat Archer to secure your business and stay focused on what truly matters: achieving your goals.

Small But Not Safe - Debunking the Cybersecurity Myth:

Cybercriminals often target small businesses because they know you likely have fewer security measures in place. You're seen as an easier target with potentially valuable data (customer information, financial details). You might think you're too small to be noticed, but in reality, you are the perfect target.

First-Party vs Third-Party Cyber Insurance: What’s the Difference?

When evaluating cyber insurance, it’s important to understand the distinction between first-party and third-party coverage. 

First-party cyber insurance protects your business against direct losses from a cyber incident; This includes data recovery, lost income from downtime, ransomware payments, and breach response costs. 

Third-party cyber insurance, on the other hand, covers liabilities you may face if a cyber event impacts others, such as customers, partners, or vendors.

This could include legal defense costs, settlements, or regulatory fines if sensitive client data is compromised. 

Most businesses need a combination of both to ensure full protection.

What's NOT Covered - Common Cybersecurity Insurance Exclusions:

It's crucial to understand that cybersecurity insurance isn't a silver bullet. Most policies have exclusions, such as:

Insider Threats: Damage caused by malicious employees or contractors.

Outdated Software: Breaches resulting from known vulnerabilities in unsupported software.

Lack of Basic Security Measures: Failure to implement fundamental security controls that the policy expects.

Acts of War or Terrorism: Events generally covered by other insurance types.

Intentional Acts: Deliberate actions by the insured that lead to a breach.

Getting in the Game - Requirements to Reduce Premiums for Cybersecurity Insurance:

This is where it can feel overwhelming for small businesses that are new to cybersecurity. Insurers want to see that you are taking reasonable steps to protect yourself before they will offer coverage.

Here are some common requirements, with examples showing different levels of maturity:

Multi-Factor Authentication (MFA):

• Basic: Relying solely on username/password. Likely not enough.

• Developing: Implementing MFA for at least one critical system (e.g., email). A good start.

• Mature: MFA enforced across all user accounts and critical applications. Generally required.

Logging and Monitoring:

• Basic: No formal logging or monitoring processes in place. Highly insufficient.

• Developing: Basic logging enabled on key systems (e.g., server logs). Moving in the right direction.

• Mature: Comprehensive logging and monitoring of network activity, with regular review. Often expected.

Data Backups:

• Basic: No regular backups or backups stored locally on the same device. High risk.

• Developing: Infrequent backups to an external hard drive are kept on-site. Better, but still vulnerable.

• Mature: Automated, regular backups stored off-site or in the cloud, with a documented restoration process. Typically a must-have.

Incident Response Plan:

• Basic: No documented plan for what to do in case of a cyber incident. A significant gap.

• Developing: A basic incident response plan written down on paper outlining initial steps. Shows initiative.

• Mature: A comprehensive incident response plan that is regularly reviewed, tested, integrated with overarching security policies and standards, and involves designated personnel with defined roles. You might even have a cybersecurity firm on retainer for incident response. Strongly preferred.

Basic Security Awareness Training:

• Basic: No training provided to employees on recognizing phishing emails or other threats. Increases risk.

• Developing: Occasional informal reminders to staff about cyber threats. A step forward.

• Mature: Regular, documented security awareness training for all employees, covering topics like password security, phishing, and data handling; Increasingly becoming a standard requirement.

Your Partner in Cyber Resilience - How Threat Archer Can Help:

Feeling overwhelmed by these requirements? That's where Threat Archer comes in.

We understand that as a small business, you might not have a dedicated IT security team or extensive resources.

Threat Archer - Your Trusted, Effective, Cybersecurity Partner: 

Assess your current security posture and identify the specific gaps you need to address to qualify for cybersecurity insurance and, more importantly, protect your business.

Develop and implement essential security controls like MFA, robust logging, and reliable backup strategies, tailored to your budget and technical capabilities.

Create a practical and actionable Incident Response Plan that you can understand and follow in the event of an attack.

Implement regular security awareness training for your employees, turning them into a strong first line of defense against cyber threats.

Provide ongoing support and guidance to ensure your security measures remain effective and compliant with insurance requirements.

Don't wait until it's too late. Investing in basic cybersecurity measures and obtaining the right insurance is no longer a luxury – it's necessary for survival in today's digital landscape.

Ready to take the first step towards securing your small business and qualifying for potentially lower cybersecurity insurance premiums?

Contact Threat Archer today for a complimentary evaluation.

Let us help you build a strong security foundation and navigate the complexities of cybersecurity insurance, so you can focus on what you do best – running your business.