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The case for insurance: Cybersecurity awareness and risk management

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Fire alarms, storm windows, sprinkler systems, and door locks exist in addition to insurance for a reason. When you experience the stress of a loss event, there is still an element you can’t quite get back. And, regardless of the coverage decisions a business makes, every organization also takes specific steps to help avoid and minimize the impact of all risks — despite having an insurance policy that covers fire, theft, and storm damage. There is a common misconception that cyber insurance and cybersecurity are different, but they aren’t.

Cybersecurity is a tough risk to quantify (let alone understand) because most business owners and risk managers aren’t cybersecurity experts, and this risk is truly invisible and incredibly technical.

If you are a business owner or executive in charge of managing business exposures, it's time to get as familiar with your cybersecurity posture as you are with your fire alarms and door locks. Coalition is on a mission to help you do just that.

The true cost of cyber protection

When considering cyber risk, the cyber product market may seem like a good way to manage this exposure. The problem is that standalone cybersecurity products, or even combined service offerings, can’t actually claim to truly compensate a business after a cyber incident. While there are many great products available, cyber insurance is the most effective cybersecurity solution to ever hit the market.

Not to mention the fact that cybersecurity products can be costly. Imagine trying to justify the purchase of an expensive firewall to a small family business or brand new company just starting out. If they do agree to invest, these cybersecurity solutions may still fail to prevent a business-ending cyber incident.

Now, consider the benefits of having an insurance policy that truly protects your business, often at less cost to the company than many cybersecurity products or services. Coalition takes cyber insurance a huge leap further than most carriers, offering a policy that comes with access to tools and expertise that help every one of our policyholders strategically navigate their cyber exposure.

The mission to solve cyber risk

Coalition’s mission is not limited to underwriting risk or selling insurance, but working towards solving cyber risk. This means finding new ways to communicate technical data in digestible reports, raising awareness on emerging threats, and helping policyholders reduce their exposure and improve their security posture for minimal or no additional cost.

Coalition makes this possible by providing a free cyber risk assessment (CRA) to everyone that applies for a quote. Click here to receive a tailored risk assessment.

Why you need a sprinkler system and a deadbolt

While reviewing the results of your CRA, please consider the two primary threats your business may face:

1) Ransomware 2) Business email compromise (BEC)

These are the two most likely threats, and for each of these threats, there is an equivalent sprinkler system and deadbolt.

Ransomware attacks are one of the most widely acknowledged cyber threats in the world. When a business is being burned by ransomware, the sprinkler system comes in the form of data backups — segmented data backups. Remember that backups sitting on the same network will get burned just like anything in the same room as the fire.

Choose a cloud-based data backup provider to make sure all critical business data is protected in the cloud safely, without the risk of being destroyed or deleted. View backup best practices.

To prevent theft, use the digital deadbolt; two-factor authentication or multi-factor authentication. 2FA is a security measure that adds a layer of protection to systems by requiring at least one additional verification step beyond a username and password. 2FA and MFA are the standard digital deadbolt used to secure email access. See how to enable 2FA.

Protect your business from cyber threats

Our H1 2020 Cyber Insurance Claims Report explores top cybersecurity trends and threats facing organizations today, in addition to the impact of COVID-19 on cyber insurance claims. Learn how ransomware, funds transfer fraud, and business email compromise could impact your business.