Is your business prepared to confront today’s growing cybersecurity threats?
Although adopting the latest technologies and industry trends is undoubtedly crucial, it is equally important to ensure that your business has the best cyber liability insurance. Think of it as an invisible shield protecting your business from devastating losses. However, to harness its full potential and ensure robust protection, it is critical to have a nuanced understanding of it.
In this blog, we’ll delve into the key considerations when shopping for cyber liability insurance. But before we do that, let’s first understand the difference between first-party coverage and third-party coverage.
First-Party Coverage vs. Third-Party Coverage
Every business today needs cyber liability insurance. To help businesses quickly respond and recover from data breaches, insurance providers have developed two types of cyber liability insurance – first-party coverage and third-party coverage.
Here’s how they differ:
1. Focus of Coverage
- Shields the insured business
- Protects against direct losses and expenses resulting from a data breach
- Focuses on liabilities from third parties
- Covers claims made by third parties who suffered losses because of the insured business’s cyber incident
2. Costs Covered
- Covers only the insured’s direct costs
- Pays for revenue loss, forensic investigations, data restoration, public relations and customer notification services
- Pays for businesses’ legal expenses
- Covers cyber-related liabilities, such as data breaches, privacy violations and defamation
3. Reputation Management
- Pays for expenses related to hiring public relations firms
- Aims to restore the brand image of a business after a cyber incident
- Primarily focused on handling the legal aspects
- More concerned with defending against claims and settling third-party disputes
4. Beneficiaries of Coverage
- Directly benefits the insurer
- Provides direct protection to the insured party against direct losses
- Benefits third parties, such as a business’s customers, clients and business partners
- Provides direct protection to those affected by a data breach suffered by the insured business
Key Things to Consider While Shopping for a Policy
Here are some key points to consider when shopping for a cyber liability insurance policy:
Comprehensive coverage is key to reducing the impact of a cyber incident. Your business can become the victim of a data breach or a large-scale cyberattack at any time. That’s why it’s crucial to ensure that the policy addresses cyber-risks specific to your business.
Evaluate the policy to understand the coverage limits. The policy that you finalize should be able to handle the potential costs associated with a cyberattack, including legal fees, data recovery and business interruption expenses.
Study the policy outlines to understand what is excluded. Any limitations in your policy can make your business vulnerable. That’s why it’s crucial to know what is not covered by your insurance.
Make sure that the policy has provisions for developing and implementing a cyber incident response plan tailored to suit your business. Without a well-defined response plan, you won’t be able to effectively respond to a cyber incident.
Here at Databranch, our managed clients receive expert guidance if a cyber incident were to occur at their business. This includes device isolation through our software tool stack, immediate assistance from an engineer, and guidance if you have questions while submitting your insurance claim.
Before finalizing a policy, compare and cross-check various policies, especially their costs and unique offerings. Although opting for the most affordable option can be tempting, it is crucial to ensure that the coverage you choose is best suited for your business needs.
It is also important to do your due diligence and research the insurance company’s reputation. Look for an insurer with a good reputation and positive customer feedback. Choose a company that settles claims promptly, as that is a reliable indicator of the level of support you can expect when you need it.
Build a Resilient Future
Finding the right cyber liability insurance coverage for your business can be daunting. However, it can be even more challenging to get a payout when you need it the most. That’s where Databranch comes in.
We can help you improve your chances of securing coverage. Reach out to Databranch today at 716-373-4467 option 6, or firstname.lastname@example.org, and let’s build a resilient future together. You can also download our checklist below which summarizes these essential steps when buying cyber insurance.
The Essential Cyber Insurance Buyers Checklist
Finding the right cyber liability insurance can be daunting. To facilitate your buying journey, we’ve simplified the complexities with this checklist.
The need to back up data has been around since floppy disks. Data loss happens due to viruses, hard drive crashes, and other mishaps. Most people using any type of technology have experienced data loss at least once.
There are about 140,000 hard drive crashes in the US weekly. Every five years, 20% of SMBs suffer data loss due to a major disaster. How would you business be effected if you lost most of your critical business data? Visit our website here to set your Recovery Time Objectives (RTO) and calculate your recovery cost.
This increate in data loss has helped to drive a robust cloud backup market that continues to grow.
But one thing that’s changed with data backup in the last few years is security. Simply backing up data so you don’t lose it, isn’t enough anymore. Backing up has morphed into data protection.
What does this mean?
It means that backups need more cybersecurity protection. They face threats such as sleeper ransomware and supply chain attacks. Cloud-based backup has the benefit of being convenient, accessible, and effective. But there is also a need for certain security considerations with an online service.
Companies need to consider data protection when planning a backup and recovery strategy. The security tools used nowadays have to protect against the growing number of threats.
Some of the modern threats to data backups include:
- Data Center Outage: The “cloud” basically means data on a server. That server is internet accessible. Those servers can crash. Data centers holding the servers can also have outages.
- Sleeper Ransomware: This type of ransomware stays silent after infecting a device. The goal is to have it infect all backups. Then, when it’s activated, the victim doesn’t have a clean backup to restore.
- Supply Chain Attacks: Supply chain attacks have been growing. They include attacks on cloud vendors that companies use. Those vendors suffer a cyberattack that then spreads throughout their clients.
- Misconfiguration: Misconfiguration of security settings can be a problem. It can allow attackers to gain access to cloud storage. Those attackers can then download and delete files as they like. Visit our website here to read more about the Misconfiguration of Cloud Applications.
What to Look for in a Data Protection Backup System
Just backing up data isn’t enough. You need to make sure the application you use provides adequate data protection. Here are some of the things to look for when reviewing a backup solution.
Ransomware can spread throughout a network to infect any data that exists. This includes data on computers, servers, and mobile devices. It also includes data in cloud platforms syncing with those devices.
95% of ransomware attacks also try to infect data backup systems.
It’s important that any data backup solution you use, has protection from ransomware. This type of feature restricts automated file changes that can happen to documents.
Continuous Data Protection
Continuous data protection is a feature that will back up files as users make changes. This differs from systems that back up on a schedule, such as once per day.
Continuous data protection ensures that the system captures the latest file changes. This mitigates data loss that can occur if a system crashes before the next backup. With the speed of data generation these days, losing a day’s worth of data can be very costly.
Data protection incorporates proactive measures to protect files. Look for threat identification functions in a backup service. Threat identification is a type of malware and virus prevention tool.
It looks for malware in new and existing backups. This helps stop sleeper ransomware and similar malware from infecting all backups.
Cybersecurity professionals around the world promote zero-trust security measures. This includes measures such as multi-factor authentication and application safelisting.
A zero-trust approach holds that all users and applications need ongoing authentication. So, just because a user is logged into the system today, doesn’t mean they are completely trusted.
Some of the zero-trust features to look for include:
If you back up to a USB drive or CD, you have one copy of those files. If something happens to that copy, you could experience data loss.
Cloud backup providers should have backup redundancy in place. This means that the server holding your data mirrors that data to another server. This prevents data loss in the case of a server crash, natural disaster, or cyberattack.
At Databranch, our Datto devices utilize a reliable data backup redundancy solution by storing your critical business data onto your local Datto device as well as 2 offsite cloud storages.
Air Gapping for More Sensitive Data
Air gapping is a system that keeps a copy of your data offline or separated in another way. This would entail making a second backup copy of your data. Then, putting it on another server that is disconnected from external sources.
This is a feature that you may want to seek out if you deal with highly sensitive data. It helps to ensure that you have at least one other copy of your backup. A copy walled off from common internet-based attacks.
Need Help With Secure Backup & Data Protection Solutions?
With Datto, your company can be up and running in just seconds after a disaster. Instant virtualization combined with the ability to backup as frequently as every 5 minutes means that with the click of a button, your Datto device recreates your computers and servers so your business can resume as if nothing had ever happened.
Our Datto devices utilize a reliable data backup redundancy solution by storing your critical business data onto your local Datto device as well as 2 offsite cloud storages. Datto even includes ransomware detection by running analytics to compare the two most recent backup snapshots to identify ransomware footprints.
Have you updated your backup process for today’s threats? Contact us today at 716-373-4467 x115 or email@example.com to schedule a chat about data backup and protection.
You can also visit our website to learn more about Datto and the benefits it provides.
Article used with permission from The Technology Press.
No business wants to suffer a data breach. But unfortunately, in today’s environment, it’s difficult to completely avoid them. Approximately 83% of organizations have experienced more than one data breach. (IBM Security 2022 Cost of a Data Breach Report)
These breaches hurt businesses in many ways. First, there is the immediate cost of remediating the breach. Then, there are the lost productivity costs. You can add lost business on top of that along with lost customer trust. A business could also have extensive legal costs associated with a breach.
Visit our website here to see what the cost of downtime would be for your business.
According to IBM Security’s report, the cost of a data breach climbed again in 2022. The global cost of one breach is now $4.35 million, up 2.6% from last year. If your business is in the U.S., the cost rises to $9.44 million. In Canada, the average data breach costs companies $5.64 million.
Costs for smaller companies tend to be a little lower. But breaches are often more devastating to SMBs. They don’t have the same resources that larger companies do to offset all those costs.
It’s estimated that 60% of small companies go out of business within six months of a cybersecurity breach.
Companies don’t need to resign themselves to the impending doom of a data breach. There are some proven tactics they can take to mitigate the costs. These cybersecurity practices can limit the damage of a cyberattack.
All these findings come from the IBM Security report. They include hard facts on the benefits of bolstering your cybersecurity strategy.
Cybersecurity Tactics to Reduce the Impact of a Breach
Use a Hybrid Cloud Approach
Most organizations use the cloud for data storage and business processes. Researchers found that 45% of all data breaches happen in the cloud. But all cloud strategies are not created equally.
Breaches in the public cloud cost significantly more than those in a hybrid cloud. What is a hybrid cloud? It means that some data and processes are in a public cloud, and some are in a private cloud environment.
What some may find surprising is that using a hybrid cloud approach was also better than a private cloud.
Put in Place a Disaster Recovery Plan & Practice It
You don’t need to be a large enterprise to create an Disaster Recovery (DR) plan. The DR plan is a set of instructions for employees to follow should any number of cybersecurity incidents occur.
Along with this, it is the Business Continuity Solution put in place by the business to monitor backup processes, implement recovery objectives and restore your data to its former state.
Here is an example. In the case of ransomware, the first step should be disconnecting the infected device. DR plans improve the speed and effectiveness of a response in the face of a security crisis.
Having a practiced Disaster Recovery plan reduces the cost of a data breach by an average of $2.66 million per incident.
Need help setting up your Disaster Recovery plan? We’re ready to help you with a custom-built business continuity solution that meets the needs of your unique business. Give our experts a call at 716-373-4467 x115 or click here to get started.
Adopt a Zero Trust Security Approach
Zero trust is a collection of security protocols that work together to fortify a network. An example of a few of these are:
Approximately 79% of critical infrastructure organizations haven’t adopted zero trust. Doing so can significantly reduce data breach costs. Organizations that don’t deploy zero trust tactics pay about $1 million more per data breach.
Use Tools with Security AI & Automation
Using the right security tools can make a big difference in the cost incurred during a data breach. Using tools that deploy security AI and automation brought the biggest cost savings.
Data breach expense lowered by 65.2% thanks to security AI and automation solutions. These types of solutions include tools like advanced threat protection (ATP). They can also include applications that hunt out threats and automate the response.
Here at Databranch, we use a number of automated remote monitoring tools that will inspect your system 24/7, 365 days a year to help prevent attacks from happening to your organization. Click here to learn more.
How to Get Started Improving Your Cyber Resilience
Many of these ways to lower data breach costs are simply best practices. You can get started by taking them one at a time and rolling out upgrades to your cybersecurity strategy.
Databranch will even help you put together a roadmap to achieve this in the most efficient way possible. Address the “low-hanging fruit” first. Then, move on to longer-term projects.
As an example, “low-hanging fruit” would be putting multi-factor authentication in place. It’s low-cost and easy to put in place. It also significantly reduces the risk of a cloud breach.
A longer-term project might be creating an incident response plan. Then, you would set up a schedule to have your team drill on the plan regularly. During those drills, you could work out any kinks.
Need Help Improving Your Security & Reducing Risk?
Working with Databranch can take the cybersecurity burden off your shoulders. Contact us today at 716-373-4467 x 115 or firstname.lastname@example.org to discuss your security needs.
Article used with permission from The Technology Press.