Cyber Security Insurance 101: A Fast-Track Overview and Key Considerations

With nearly a quarter of Canadians now working from home and even more in a hybrid model, the integration of technology into daily operations is an even more important aspect for many businesses to consider.

While the shift has led to enhanced productivity, it has also given rise to a significant surge in cybercrime. In 2021 alone, there were over 74,000 reported cases of cybercrime in Canada. As headlines continue to highlight data breaches and financial loses, many organizations have found themselves asking what can be done to safeguard their data and mitigate their risk.

Graph showing the increase in reported cyber crimes in Canada.
Number of police-reported instances of cybercrime in Canada from 2014 to 2022, Statista

As cyber threats continue to evolve, more organizes are investing in cyber security insurance and regular security assessments to help increase their security while also mitigating risk. 

What Is Cyber Security Insurance?

With the global average cost of a data breach in 2023 reaching a staggering $4.45 million USD, it’s not surprising organizations have turned to cybersecurity insurance to provide financial and reputational coverage. So, what exactly is cyber security insurance?

While cyber security insurance offers financial coverage to organizations in the face of a cyber-attack or data breach, it may also offer support to your organization through the negotiation process of rebuilding after a breach occurs. Investing in cyber security insurance also reflects an organization’s commitment to the security of the business and clients’ sensitive data. In essence, cyber security insurance becomes a proactive shield, fortifying your organization against the rapidly changing threat landscape of the digital age.

Cost of a data breach report 2023, IBM Security

We recommend reaching out to a variety of insurance providers to inquire about the cyber security insurance plans, as each provider offers different policies and support as part of their plan.

So, You Want Cyber Security Insurance. Now What?

When preparing to invest in cyber security insurance, a strategic and informed approach is key.

  •  Understand your current security posture. We recommend you conduct your own thorough assessment of your current cyber security policies and procedures.

  • Identify areas of improvement. Through your assessment, identify areas of improvement that you can implement prior to investing in insurance.

  • Document your current position. Once you have implemented any improvements you intend to make, ensure your current security position is well documented; this will be crucial to helping you fill out your cyber security insurance application form.

This is where Regroove’s Microsoft 365 Assessment can help! Our team will assess your current Microsoft environment for security best practices and document your current position. They will also review their assessment summary with you and your team to ensure you understand your current security posture, and help you determine which improvements you would like to put in place before applying for your insurance policy. The assessment acts as a proactive step that aligns your organization with the stringent requirements of cyber security insurance providers.

It can also be helpful to familiarize yourself with the types of questions insurance providers may ask during the application process. Preparing responses to queries about your cyber security protocols, incident response plans, and employee training can significantly streamline the process. For more insight into the types of questions you might get asked, check out Sarah’ blog post: Why Your Business Needs Cyber Security Insurance (Plus One Easy Way to Meet the Requirements).

When Should I Invest in Cyber Security Insurance?

As the digital landscape continues to evolve, safeguarding your organization against cyber threats becomes not just a necessity, but strategically imperative. Cyber security insurance serves as a crucial part of your plan to protect your organization, offering financial coverage and support while reinforcing a commitment to data security.

Don’t navigate this landscape alone. Our Microsoft 365 Assessment can help ensure you’ve implemented Microsoft security best practices that help to protect your organization and your team, while also documenting the information you need to quickly get through the insurance application process. Reach out today using the form below to get started.