Cyber Liability

Most companies dealing with sensitive electronic data invest in cyber insurance policies. Like other forms of insurance, cyber insurance offers coverage for potential emergency incidents such as data theft, loss, or damage. Unfortunately, businesses assume that a cyber insurance policy completely covers them in the event of an emergency. Most cyber insurance policies require businesses to uphold certain data protection standards. Insurance companies may deny claims if they find your company negligent in upholding proper protection standards.

Three Key Areas of Negligence

1. Outdated or Improper Systems: If your hardware firewall and software lack the proper requirements to protect your data, you risk voiding your insurance policy coverage. This being with equipping your business with industry quality hardware such as the Sophos XG firewall line. The hardware firewall serves as your first line of defense against cyberattacks making it essential to invest in a high-quality device. Firewalls last five to eight years but consider replacing them every four to five years to avoid early failure.
2. Missing Patches: Frequently update all software, especially antivirus software. All applications suffer shortcomings, so developers continuously release updates and patches to improve the application. Keeping all your network security software up to date reduces the chances of a network breach. If one occurs, running on a previous or unpatched version allows insurance companies to deny your insurance claim because of your negligence.
3. Endpoint Security Negligence: Statistically, 70% of network breaches occur via endpoints. Endpoint breaches occur in many forms from password failure to phishing. Endpoint security begins with proper employee training. Teach employees to recognize signs of endpoint cyber-attacks such as phishing emails. Implement company-wide password procedures such as using special characters and changing the password every 90 days. Install endpoint security software on all company devices and never use default passwords. Read more about endpoint security in our previous blog post here.

Prevention

Network security and cyber insurance go hand in hand. Without proper network security, any claim you submit holds no merit. If you prove that you took precautions and followed the proper procedures to secure your network, then the insurance policy works in your favor, but it all begins with properly maintaining your network.

Without the experience of an expert IT manager, setting up and maintaining excellent network security provides challenges to businesses. With a shortage of experts, companies turn to inexperienced IT professionals to secure their networks. Origami Technology Group offers the benefits of a full expert team to secure your network and protect your business from cyber-attacks and negligence. If you have any questions, reach out to us at info@origamitg.com. Make sure to like our Facebook page for more content each week!