How To Meet Backup Requirements for Cyber Insurance Coverage
One of the most important – and often overlooked – aspects of securing cyber insurance coverage is ensuring that your backup and recovery processes meet the requirements set forth by your insurer. While most insurers are willing to work with policyholders to tailor coverage to their specific needs, there are some basic requirements that must be met in order for an organization to qualify for coverage.
Cyber Insurance Statistics
In order to understand the importance of meeting backup requirements for cyber insurance coverage, it’s helpful to look at some recent statistics. According to a 2018 study by Chubb, the average cost of a data breach is $3.86 million. This number has been on the rise in recent years, as the average cost of a data breach was $3.52 million in 2017 and $3.62 million in 2016.
What’s more, the study found that the average time to identify and contain a data breach is 279 days. This means that organizations that are not properly prepared to deal with a data breach can expect to incur significant expenses – both in terms of direct costs and indirect costs such as lost business opportunities and reputational damage – over a long period of time.
This is why it’s so important for organizations to have robust backup and recovery processes in place. By ensuring that data can be quickly and easily recovered in the event of a breach, organizations can minimize the amount of time that they are impacted by the breach and, as a result, reduce the overall cost of the incident.
What Are The Security Measures Required For Cyber Insurance?
In order to meet the backup requirements for cyber insurance coverage, an organization must have a robust backup and recovery plan in place. This plan must be well-documented and regularly tested to ensure that it is effective in the event of a data breach or other cyber incident. The insurer will also require proof that the organization has implemented adequate security measures to protect its data, including encryption and other security controls.
Some of the most common security measures required by insurers include:
– Encryption of all sensitive data
– Implementation of strong access control measures
– Regular backups of all data
– Monitoring of network activity for suspicious activity
Organizations should work with their insurance broker or agent to determine what specific measures are required by their insurer.
Organizations that fail to meet these requirements may find themselves without coverage in the event of a cyber incident. To avoid this, it is important to work with your insurer to ensure that your backup and recovery plan meets their standards. By doing so, you can help protect your organization from the financial devastation that can result from a data breach or other cyber attack.