<\/a><\/span><\/span><\/blockquote>\n
2. There Are Two Kinds of Coverage Your Customers May Want<\/h2>\n
While a given company may be issued a single policy, there are two types of claims that may be presented against a policy which, in turn, dictates the coverages that may need to be covered within the policy. The two types of claim coverages are:<\/p>\n
\n
- 1st Party Claim Coverage<\/strong> \u2013 This cyber insurance coverage protects your customer should they be the victim of a data breach, cyber event, ransomware attack, a loss of funds (fraud), other situational types of coverage against things like reputational harm, voluntary shutdown of the business, business interruption reimbursement, and more.<\/li>\n
- 3rd Party Claims Coverage<\/strong> \u2013 This cyber insurance coverage protects against lawsuits by another party. For example, if your customer has a data breach and personal customer data (think social security numbers, credit card info, etc.) has been published on the dark web, your customer could be the subject of a lawsuit. This kind of coverage protects against class action claims, regulatory claims, and private rights of action claims.<\/li>\n<\/ul>\n
Further reading<\/span> Why Cyber Insurance Is Crucial for MSP Clients: An Unavoidable Necessity<\/a><\/p>\n
3. There Are Some Tech Basics Needed<\/h2>\n
In 2022, not every cyber insurer has the exact same requirements. Cyber insurance is still somewhat in its infancy today, with many insurers learning from the outcomes of claims placed against initially issued policies and formulating what specific technologies need to be in place before they\u2019ll even consider issuing a policy. The most rudimentary list that almost all insurers agree on includes (but certainly isn\u2019t limited to):<\/p>\n
\n
- Backups<\/strong> \u2013 This is on every insurer\u2019s radar. The idea that a business can get itself back up and operational quickly means less impact to the insured (your customer) and, therefore, less damages to be presented in a claim.<\/li>\n
- Endpoint Protection<\/strong> \u2013 Insurers realize that phishing remains the number-one attack vector for most cyberattacks, so they require you to have protection on endpoints as a minimum.<\/li>\n
- Patch \/ Vulnerability Management<\/strong> \u2013 Keeping operating systems and applications up to date is critical to minimize the use of supply chains (read: the software vendors that make the applications your customers utilize) as an attack vector.<\/li>\n<\/ul>\n
4. Policies Are Cheaper Than a Breach<\/h2>\n
According to IBM\u2019s Cost of a Data Breach report<\/a> this year, the average data breach costs the victim organization around $4.5 million. That seems very much an enterprise number, so let\u2019s use the last published number available, which came from Ponemon\u2019s 2019 \u201cState of Cybersecurity in Small & Medium Size Businesses\u201d report, where the average cost after a cyberattack was $1.2 million. Even if you scale that number down a bit to better reflect the size of your typical customer, it\u2019s still evident that the cost of a cyber insurance policy is materially lower than dealing with a breach. But, in the spirit of keeping things real, be sure to check out the last consideration\u2026<\/p>\n
5. Pay Attention to Policy Specifics<\/h2>\n
Insurers aren\u2019t just offering a blanket \u201cyou\u2019re protected against all things cyber\u201d, as they wouldn\u2019t remain in business for very long. There are plenty of cases where a claim was denied, the insured sued the insurer, and lost in court because of a technicality involving the policy covering specific types of threat actions that weren\u2019t present in the attack that prompted the claim in the first place. So, whether you\u2019re involved in helping your customer choose a policy, or just providing them with guidance, make sure they understand that the only way a claim will be paid is if the attack actions follow the policy coverage to the letter.
\nGetting the Most out of Cyber Insurance
\nDoes your customer absolutely need a cyber insurance policy? No. Should they have one? Probably. Will it definitely cover the customer\u2019s losses should an attack occur? It depends.<\/p>\nThe reality is that cyber insurance is an opportunity for you as the customer\u2019s trusted technology partner to ensure they are as protected as possible, minimizing the risk of a successful attack and, therefore, the need for a claim. By providing your customer with proper guidance, you set them and you up for success through better cybersecurity controls and incident response plans in place, and a proper level of dependency on a cyber insurance policy as just one of many parts of the overarching cybersecurity strategy.<\/p>\n
Explore more solutions from MSP360<\/h3>\n
We offer <\/span>\u00a0reliable cloud backup<\/span><\/a> and image-based protection. A key feature is the dedicated<\/span> SaaS backup<\/b><\/a> for popular platforms like <\/span>Microsoft 365<\/span><\/a>, including<\/span> OneDrive backup<\/b><\/a>,<\/b> Outlook Backup<\/span><\/a> features, <\/span>Google Workspace<\/span><\/a> and the benefits of Domain Management.<\/a><\/span><\/p>\n
RMM<\/b><\/a> Platform:<\/b> This flagship product provides powerful<\/span> monitoring and alerting<\/span><\/a> and automated<\/span> patch management<\/span><\/a> and <\/span>HALOPSA integration<\/span><\/a>, to ensure endpoints remain secure and operate smoothly.<\/span><\/p>\n
Find what PowerShell and Command Prompt are, what is the difference,<\/a> and when to use each of these tools.<\/p>\n
Start securing your IT environment today with our<\/span> Free Backup Software<\/span><\/a> or explore the full range of features. We are a<\/span> trusted company<\/span><\/a> committed to your success and here we share some tips on how MSP marketing can help you grow in a niche better<\/a>, or setting up a new IT department<\/a>.<\/span><\/p>\n
Finally, find videos aimed to guide you through installation processes for the cloud storage of your choice<\/a>, with advanced features of MSP360 Explorer, an overview the support for AWS Key Management Service in MSP360 Backup<\/a>, or how to configure a CM import role<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"
As an MSP offering cybersecurity services and engaging with customers about securing their environment, you\u2019re going to need to know a thing or two about cyber insurance.<\/p>\n","protected":false},"author":85,"featured_media":54898,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[877,884],"tags":[],"class_list":["post-54897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-articles","category-msp-business-articles"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts\/54897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/users\/85"}],"replies":[{"embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/comments?post=54897"}],"version-history":[{"count":6,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts\/54897\/revisions"}],"predecessor-version":[{"id":61349,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts\/54897\/revisions\/61349"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/media\/54898"}],"wp:attachment":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/media?parent=54897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/categories?post=54897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/tags?post=54897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}