Cyber insurance has become a critical component of a company’s risk management strategy, especially in cities like Edmonton, where businesses increasingly rely on technology.
However, many companies face challenges in securing competitive cyber insurance rates. This issue often stems from gaps in their cyber security posture, which presents a greater total cost of risk to the insurance providers.
Here, we explore the reasons behind this trend and how businesses can improve their cyber security preparedness to obtain better cyber insurance terms.
You Have Insufficient Cyber Security Measures
One of the primary reasons businesses in Edmonton and beyond get uncompetitive cyber insurance offers is inadequate cyber security measures.
Insurance companies assess the level of risk based on the cyber security practices of the business. If a company lacks comprehensive cyber defenses, such as firewalls, anti-virus software, or a secure network infrastructure, it is seen as a high-risk entity, leading to higher insurance premiums.
One of our latest blogs gives you a checklist of the key cyber security measures that cyber insurance providers look for when they are underwriting a policy.
Rise in Phishing Attacks and Ransomware Trends
Phishing attacks and ransomware incidents have seen a significant rise in recent years, meaning they are a key driver of uncompetitive premiums.
This does present a key focus point, however. By deploying cyber security measures that directly address these key threats, your business will be able to secure lower premiums.
Lack of Proactive Risk Management
Cyber security is not a one-and-done deal; it’s a dynamic and continuous process. If a business is unable to show that they have processes and policies in place to review and revamp their cyber security, this can present future risks to insurance carriers, even if the defenses in place now are solid.
Cyber security is also a systematic endeavor; proactive risk management links your people, processes, and defenses to work together as a team. This lack of foresight can be a red flag for cyber insurance providers in Edmonton and elsewhere, leading to less competitive insurance terms. This is what our cyber readiness programme embraces as an approach; it helps you to continually mitigate risks so that your business can grow securely and without disruptions.
Poor Cyber Security Hygiene
Cyber security hygiene refers to the everyday things – the small but important measures that your business undertakes to keep its cyber security vitals strong. Things like proactive patching and updates, password management, cleaning up old user accounts, and implementing MFA across the board are some of the key measures involved here.
Insurance companies will also consider these practices when determining premiums, and poor hygiene can drastically increase the cost of cyber insurance.
Accessing The Best Cyber Insurance Premiums With Cyber Security
To secure competitive cyber insurance, businesses need to demonstrate to insurers that they take cyber risk management seriously.
This involves not only investing in the latest security technologies but also in building a culture of cyber security awareness throughout the organization. Our new blog goes into more detail on what you can do, but here are some steps you can take:
- Partner with a Cyber Security Company: Engaging with a reputable cyber security company in Edmonton and beyond can make the process of securing your business and competitive cyber insurance premiums a faster and smoother one.
- Implement Comprehensive Security Measures: This includes firewalls, anti-malware software, intrusion detection systems, and secure network infrastructure.
- Conduct Regular Security Training and Awareness Programs: Employees should be trained to recognize and respond to phishing attacks and other cyber threats.
- Develop and Test Incident Response Plans: Having a robust incident response plan that is regularly tested ensures that the business can quickly and effectively address any cyber incidents.
- Maintain Good Cyber Security Hygiene: Regular updates, strong password policies, and the use of multi-factor authentication can significantly improve a company’s security posture.
Final Thoughts
In conclusion, to obtain competitive cyber insurance rates, businesses must prioritize their cyber security efforts. By demonstrating a strong commitment to cyber risk management and proactive risk management, companies can not only protect themselves from the ever-evolving cyber threats but also position themselves favorably in the eyes of insurance providers.
A partnership with a trusted cyber security company can be a pivotal step in this journey, offering the expertise and support needed to navigate the complex landscape of cyber security and insurance.
If you’d like to shine a light on your cyber security posture and get on the path to a secured business and the best cyber insurance premiums available to you, you can get in touch with our friendly team here at Tier 3 IT Solutions and we’ll be glad to help you.
Tier3 IT Solutions – Your Premier IT Support Provider in Edmonton and Alberta
Looking for top-tier IT support in Edmonton, Alberta? Look no further than Tier 3 IT Solutions. As the foremost IT support company in the region, we specialize in delivering tailored solutions designed to address the specific requirements of businesses in Edmonton and beyond. Our seasoned team of technicians are dedicated to providing prompt help desk support and maintaining a proactive stance towards IT management.
At Tier 3 IT, we understand the importance of a robust technology infrastructure for your business. That’s why we offer a comprehensive suite of services ranging from network monitoring and cyber security to cloud solutions and data backup. With Tier 3 IT at your side, rest assured that your technology needs are in capable hands.
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