3 – Small Business Cyber Insurance – what do you need to know?

by | Nov 23, 2022 | Podcast

What is Cyber Insurance and should you be thinking about it for your business?  We look at the process for getting this important part of cyber resilience for your small or medium sized business and why the process of getting ready for cyber insurance may be more important than the process of getting the actual insurance.

Cyber Security 4 Small Business is a set of resources to help small business owners understand the Cyber Threat and be able to defend their network is the most cost effective way possible.

We believe that 95% of Cyber Security and Cyber Resilience can be achieved through good systems administration and good processes, without all the expense of engaging cyber security experts.

Cyber insurance is crucial for all types of businesses but is often overlooked by smaller ones. In this episode, we are talking about the importance of having cyber insurance in general and why your small business definitely needs one.

Listen now to gain a better understanding of cybersecurity, cyber insurance, and everything else you need to know about it.

What is the importance of having cyber insurance?

● Financial Protection

Many cybersecurity attacks cause significant adages to your expenses. In the event you undergo an attack that does so, your cyber insurance will provide you with a financial buffer that can help you recover from the damages.

● Cybersecurity Assessment

The application process for cyber insurance will require you to answer a series of questions to give the insurers an idea of how much liability they need to prepare for when they insure your business. This process is extremely helpful in increasing your cyber-resilience because it will give you a better idea of the standards so you can apply them to your business.

What questions should you expect in a cyber insurance application form?

As you apply for cyber insurance, you will find that many of the questions you will be asked after the general business information will narrow down to the current cybersecurity situation you have in your business. Here are some of the most commonly asked information and questions you should be expecting when you apply for cyber insurance:

● Previous Cyber Incidences
● Managed Services Provider
● Active Servers in the Business
● Equipment Count
● Annual IT Budget
● Percentage of IT Budget for Cybersecurity
● Outsourced Services and Applications
● Approach to Managing Sensitive Data
● Information Management
● Back Ups
● End-point Protection
● Domain Administrator Accounts
● Non-IT Administrator Access
● Network Monitoring Solutions
● Patch Management
● Zero-Day Exploits
● Process for Third-Party Payments
● Security Products
● Incident Response Plan
● Employee Awareness

These are only some of the many information that cyber insurance providers will ask for, and while not all of them apply to small businesses, it will be helpful for you to take a look into them too. There are many areas of cybersecurity that can be pretty technical but can be covered by one software or service, so you need to make sure you don’t have multiple subscriptions for services you do not need.

If you’re planning to apply for cyber insurance for your small business and you have no idea where to begin, reach out to us, and we’ll help you. We’ve been helping plenty of small businesses take their cybersecurity resilience up a notch by helping them assess their current cybersecurity and filling out cyber insurance applications.

Understand your cybersecurity risk for your small business

Try our FREE Essential 8 Auditor Tool