Preparing for Your Cyber Insurance Renewal
As you approach your annual cyber insurance renewal, you can take specific steps to ensure you have appropriate coverage and reasonable premiums.
The cyber insurance market has matured greatly over the past two years and continues to evolve rapidly. Insurers have become significantly more savvy regarding risks, protections, recovery costs, and potential liabilities. As a result, carriers are more precise in their underwriting practices.
Reviewing your cybersecurity risks and protections is a wise investment of time and resources. In a recent blog post, for example, we outlined 5 minimum cybersecurity standards that – if in place – can significantly reduce your premiums.
Here is a roadmap:
Review Your Original Application and Security Declarations
When you first applied for cyber insurance, you completed an application and, in most cases, a security survey/questionnaire. If you have not formally asked to complete a new questionnaire, take the initiative to review and update your answers.
As a part of the review, document any changes in your cybersecurity protections. Make note if you added new protections or updated procedures.
If you’ve removed or replaced any cybersecurity tools, specify which ones and the reasons for the change. It’s important to track modifications as your needs and environment evolve.
Reassess your Cybersecurity Protections
Policy renewal is a great time to step back and reassess your cybersecurity. Compare your protections to industry, regulatory, and compliance standards relevant to your business.
Our eBook, Cyber Security Requirements for Cyber Insurance, outlines basic, preferred, and best-practice protections to consider before getting or renewing your policy.
As part of your analysis, consider completing new assessments, such as Penetration Testing and Security Audits of your Microsoft 365 or Google Workspace tenant. These evaluations can offer valuable insights, helping to inform decisions and set priorities for future cybersecurity improvements.
Deploy Additional Protections
Based on your review and assessments, determine if you should modify your cybersecurity protections. As you consider changes, prioritize your choices and efforts. hYou can make low-effort changes, as well as changes that address higher-level, critical risks.
You do not need to address every risk and gap. Instead, focus on demonstrating improvements and prioritizing the most likely and impactful risks for your business.
Put Your Policy Out to Bid
Finally, put your policy out to bid. Avoid simply adding coverage or riders to your general liability business coverage.
Cyber insurance is a specialized coverage, and the industry has become more adept at evaluating risks and potential liabilities. Partner with a broker who specializes in Cyber Insurance to market your coverage to multiple, specialty carriers. This will help you find the best balance between coverage and price.
Your Next Steps
If you are ready to move forward, here are four steps you can take today:
- Schedule time with one of our Cloud Advisors.
- Ask your Cloud Advisor about discounted and free Security Assessments.
- Evaluate options and deploy additional protections, if needed and appropriate.
- Shop your policy for the best plan and price with our partner, DataStream.
As always, our Cloud Advisors are ready to help. Contact us or schedule time for a quick online consultation.
About the Author
Allen Falcon is the co-founder and CEO of Cumulus Global. Allen co-founded Cumulus Global in 2006 to offer small businesses enterprise-grade email security and compliance using emerging cloud solutions. He has led the company’s growth into a managed cloud service provider with over 1,000 customers throughout North America. Starting his first business at age 12, Allen is a serial entrepreneur. He has launched strategic IT consulting, software, and service companies. An advocate for small and midsize businesses, Allen served on the board of the former Smaller Business Association of New England, local economic development committees, and industry advisory boards.
