By Davis Merrey
January 4, 2022

Cybersecurity insurance pays off in advance

Should your business invest in cybersecurity insurance? The advantages may be worth the investment.

Our new customer was competing for a contract for nearly $1 million but needed to apply for cybersecurity insurance and attain approval within ten business days.

Good news! We were able to help them find an insurer and deploy the necessary cybersecurity enhancements to their IT environment so they could attest to the requirements in time to be awarded the contract. Even better, the contract allowed our customers to continue to provide extremely valuable services to their clients. 

Winners all around! 

Cybersecurity insurance as a competitive advantage?

Many businesses have come to the realization that their reputation and perhaps even their qualifications to be considered as a viable provider of professional services is dependent on having cybersecurity insurance. If you are among them, you are probably wondering, “Where do I start?” 

Cybersecurity insurance requirements are becoming more stringent, existing policyholders are being hit with complicated cybersecurity questionnaires to keep their current policies, and underwriters won’t extend coverage or will restrict amounts if minimum basic controls aren’t in place. If you are unsure where to start or how your organization can protect itself with cybersecurity controls that meet cybersecurity insurance needs, you are not alone. 

Find out where you are now

Any journey must have a beginning and an end, but if you don’t know where you are starting from, you’re not likely to make it to the destination. Start with a cyber insurance risk assessment to determine your business’s current cybersecurity posture. Your IT advisor should be able to perform an assessment following the guidelines of the widely accepted National Institute of Standards and Technology (NIST) and Center for Internet Security (CIS) frameworks that can serve as a guide to meet the basic controls that most cyber insurance providers might require.

Risk assessments help to expose any holes in current cybersecurity postures and identify room for improvement. Using this information, your IT advisor can create a roadmap for qualifying for the coverage you need. 

First, find out what coverage is necessary for your situation

Make sure you understand each aspect of available coverages to ensure you select ones that match your business needs and figure out the coverage your organization needs, based on the areas identified in your cyber insurance risk assessment that require improvement. You’ll need to find an insurer who has the expertise to evaluate your business needs and advise you accordingly. Your IT advisor should be able to help you with this.  

Commit to continuous improvement

After attaining the coverage you need, make a plan with your IT advisor to stay current with cybersecurity; cybersecurity best practices are a moving target, and as a result, insurance providers often include a requirement for staying current based on the ever-evolving cybersecurity environment.

In summary, if having cybersecurity insurance is a vital part of your business strategy, ask your IT advisor in your next review meeting for a plan to help you attain the coverage you need to stay competitive.

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About Davis Merrey

Davis, is Owner/CEO of TeamLogic IT of Oklahoma City, part of an international network of franchisees providing IT support for businesses. He brings many years of experience in a variety of technology related industries, leading teams in providing technical solutions that respond to critical customer needs. The company culture is defined by its Mission Statement: “To help our fellow employees and clients be successful”.

Davis earned a BS in Electrical Engineering from the Virginia Military Institute and an MBA in Management from Golden Gate University in San Francisco. He serves on several business related and non-profit boards of directors.