When the COVID pandemic first began to spread in the United States in 2020, people were aware of the threat. It was hard not to be exposed to news about what was going on at the time. Preparedness, however, was something different. COVID was unprecedented. From businesses to healthcare systems to individuals, no one was truly sure how best to prepare. Slowly, over time, best practices were established, and those became synonymous with being prepared if/when COVID came into your business or into your life.

Cybersecurity risks are at a pandemic level in 2023. Most businesses are aware of the risk. Again, it is hard not to be because news of cyber breaches is omnipresent. How do you prepare your company for a cyber breach, however? Are you ready to prevent and mitigate? What are the basic steps toward safeguarding your financial data or the personal data your business stores?

Applying for Cybersecurity Insurance Can Help

There are multiple benefits to investing in a cybersecurity insurance policy, even though the price can be high. First and most obvious, should you get attacked by ransomware, your business will be covered. There are more benefits you may not know about, however. For example, if you are under a ransomware attack and payment needs to be made with Bitcoin, your insurance provider should be able to assist in getting you access to the Bitcoin you need. If the attacker is non-English speaking, your insurance company will be able to assist in negotiating with them.

There is another less known advantage to having a cybersecurity insurance policy, and that is the very act of applying for coverage. Many companies will take this step because they are aware of the cybersecurity risks in today’s world, but an application form for this type of policy can truly be eye opening for a business. That is because, increasingly, insurance companies are becoming more selective regarding who they are going to cover. They will provide insurance if they feel the company is doing all it can to actually prevent risk, just like health insurance will encourage its customers to pursue preventive health measures.

Insurance companies now want to make sure, on a foundational level, that the basic best practices are already in place at the applicant’s company. Is multi-factor authentication properly set up on all appropriate devices? Is there a documented incident response plan? Some application forms are becoming so detailed that they are actually getting closer to ISO 27001 standards than to an insurance application. If it is discovered after a breach that the business was not truthful in its application form, the insurance company can actually rescind coverage. 

What About NIST/CMMC?

SMBs may be plugging their ears when it comes to cybersecurity insurance. There is enough pressure to comply with NIST SP 800-171 standards so that when CMMC 2.0 launches, the companies are ready to continue their contracted work for the government. Adding the expense of a cybersecurity insurance policy, plus the time it may take to apply, can seem overwhelming.

The good news is that applying for cybersecurity insurance can also prepare companies for NIST compliance to certain degree. Documented security protocols, encrypting data for protection, and continuous monitoring are all including in NIST 800-171 controls as well as some insurance application forms. While you will not be in compliance with all 110 controls by filling out your insurance application, you’ll be moving in the right direction.

Be Aware and Prepare Simultaneously with Cybersecurity Insurance

Cybersecurity insurance can protect you while you pursue other standards, but it also can help you prepare you for a cyberattack. It can also prepare you for complying with more stringent standards like ISO 27001 or NIST SP 800-171.

If you would like to learn more about analyzing your cybersecurity insurance application as it compares with other standards, contact us today.