Cyber Insurance Renewals: What to Expect and How to Prepare

Sep 02, 2022

If you’re like most business owners, you’re aware of the growing number of cyber-attacks, and how costly they can be. However, many small-to-medium size businesses may not realize that they are in danger of becoming the next victim. With the increasing risk of cyberattacks and data breaches, it’s important to protect yourself and your customers from harm.

But how do you know if your current cyber insurance policy is still adequate? This guide will walk you through the steps of performing your due diligence, developing and implementing an application renewal plan, relying on multi-factor authentication, using antivirus to protect (consider EDR antivirus), building an incident response plan, and much more.

Let’s start with some basics.

What is Cyber Insurance?

Cyber insurance is a type of insurance that covers losses related to cyberattacks and data breaches. These types of attacks can result in significant financial losses, so having the right coverage can help you get back on track faster after an attack.

Cybersecurity insurance is a relatively new type of coverage that protects companies against losses in the event of cyberattacks, data breaches, and other cyber risks.

Cyber insurance policies can also be used to protect against extortion attempts, extortion-related losses, and lawsuits brought by customers, employees, or shareholders following a data breach. Some policies may even cover the cost of hiring outside experts to investigate a potential violation.

The History of Cyber Insurance

The primary history of cyber security insurance in Canada can be traced back to 2004 with the creation of the Insurance Bureau of Canada (IBC), which is a member-driven organization funded by property and casualty insurers across Canada. The IBC has been instrumental in promoting cyber security insurance, working with government and industry stakeholders to develop standards and guidelines for insurers, as well as educating consumers on how to protect themselves.

In 2008, the IBC launched its own national cyber security program called CyberSecure360. The program provides education, information, and resources for Canadians on how to protect themselves from cyber threats. It also helps people understand what their options are if they do become victims of cybercrime or data breaches.

In 2014, the IBC released its first set of recommendations on how insurers should handle cyber risks.

Cybersecurity Insurance Requirements

The Canadian government has increased its focus on cybersecurity and cybercrime in recent years. The Canadian Centre for Cyber Security was established by the Government of Canada in 2015 to protect Canadians from cyber threats, including cyberattacks and cyberterrorism. The centre works closely with Public Safety Canada to keep Canadians safe online.

In Canada, all businesses are required to have adequate insurance coverage to protect against losses that may occur as a result of an incident involving a computer system, and have adequate privacy protection measures. These measures include:

Having an information security policy
Implementing appropriate security safeguards
Providing training on how to handle personal information properly

Cyber Insurance Renewal Tips

Perform Your Due Diligence

Whether you are renewing a policy or purchasing a new one, it is important to consider the different types of coverage available and determine which will work best for your organization. Here are some questions that may help guide your decision-making process:

What type of data is most important to my business?
What kind of data loss would have the biggest impact on my business?
What would happen if we were breached? Who would be affected, and how much would it cost us?
How much does this cost me annually?

Develop and Implement an Application Renewal Plan

When an application is about to expire, you need to be prepared with a strategy for renewing it. The first step in developing this plan is to make sure that you have all of your licenses current, which means paying any overdue fees if necessary. Reviewing the status of all licenses on an annual basis is also important because it allows you to take action before they expire. You can use software management solutions such as Microsoft’s System Center Configuration Manager (SCCM) to help keep track of license usage.

Next, determine whether there are any other issues that may affect the ability of your organization to continue using the application(s). For example, does the vendor offer a migration path from version 1.X to version 2.X? If not, then you may need to find another vendor or develop your own migration path internally.

Finally, establish a plan for how your organization will transition from one version or platform to another if needed. It will include setting up relevant time lines for the renewal and internal team responsibilities for each renewal task.

Rely on Multi-Factor Authentication

Multi-factor authentication (MFA) is an extra layer of security that protects your accounts from unauthorized users. It requires you to use at least two methods of authentication before you can access your account. The second step can be any one of the following:

Something only you know (such as a password).
Something only you have (such as an ATM card or mobile phone).
Something only you are (such as fingerprint, eye scan, or facial recognition).

Use Antivirus to Protect (Consider EDR Antivirus)

Cyber insurance renewal is an important step in protecting your business. To ensure the renewal goes smoothly and the cost is kept low, you should use antivirus software.

Antivirus software is a key component of protecting your computer network against malicious programs and malware that can cause damage to your system or even steal personal data. The software scans your computer for viruses, worms, Trojans and spyware (computer viruses that collect information from a user’s computer).

It’s important to note that antivirus software does not provide 100 percent protection against all attacks. This is why an EDR solution (Endpoint Detection and Response) or MDR solution (Managed Detection and Response) should be considered for more comprehensive protection against cyberattacks such as ransomware. EDR software relies primarily on behavioral analysis of what’s happening on the computer, in order to respond faster to threats, and detect threats that may be new. MDR adds professional monitoring, management, and remediation services by security professionals.

Many cyber insurance companies are beginning to require a minimum of EDR security software to receive cyber insurance or preferred rates.

Concluding Thoughts

Cyber insurance is an essential component of any business’s risk management strategy, but it can be difficult to keep up with all the changes in technology that are constantly taking place. That’s why it’s important to educate yourself about what cyber insurance covers, how it works, and what you can do to prepare for renewals.

Partnering with experts in cybersecurity solutions will be the best alternative solution to keep your business away from any possible cyber attacks and data breaches.

Feel free to contact us for any questions on our cybersecurity solutions.