Reduce Insurance Costs with Security Policies and Protocols

Businesses of all sizes need insurance to protect assets from a range of calamities. Insurance makes it financially possible to be prepared for all types of eventualities from fires to ransomware. As these risks become more commonplace, having comprehensive coverage is a necessity. But as premiums continue to rise, it’s still possible to reduce insurance costs by lowering your susceptibility to cyberattacks and data breaches.

What Business Insurance Do You Need?
Your industry, company size, yearly revenue, and other factors determine the kinds of insurance coverage required. Most companies need the following insurance to survive common situations.
General Liability Insurance – Protects you from lawsuits for bodily injuries or property damage.
Commercial Property Insurance – Covers the cost of damaged property such as equipment, furniture, and buildings.
Business Income Insurance – Provides lost income due to your business closing temporarily.
Cyber Security Insurance – Covers business liability for data breaches

Do You Have Cyber Security Insurance?
One of the newest forms of business insurance is cyber security or data breach insurance. These standalone policies help you to pay for the expenses incurred from a data breach including legal fees, notification of the breach to customers or clients, recovery of comprised or lost data, and repair of damaged computer equipment.
Data breaches continue to rise as cybercriminals develop more sophisticated ways to access your company data. Natural disasters, employee errors, theft, and service interruptions or outages also pose threats to business continuity.

Ways to Reduce Cyber Security Insurance Costs
Cyberattacks can be costly. This makes premiums for data breach insurance high because the perceived risk is high. Many payouts for cyber security claims are huge.
However, Insurance carriers offer discounts to companies that take steps to lower their risks of cyberattacks. By adopting and implementing security policies and protocols to protect vital data, you can lower your premiums.

Below are a few things you can do to both lower your risks of a data breach and lower your insurance premiums.
Best Practices – Adopt the best practices of cyber security such as strong passwords which are changed regularly and employee training to prevent human errors such as opening phishing emails.
Bundles – Use your existing insurance company to get discounts by combining various policies.
Compliance – Remain compliant with regulatory and state and federal laws.
Encryption – Encrypt all sensitive data both at rest and in transit. Limit access to the encryption key to keep it secure.
Penetration Testing – Conduct annual or semi-annual penetration testing to find any vulnerabilities with your computer network. After you discover these weaknesses, repair them.
Records Control – Limit the number of files your company accesses, stores, or transfers each day.
Security Expert – Work with a cyber security expert to ensure all your data is protected, managed, and monitored.

Because you can’t predict what will happen, business insurance is an investment in your future. Insurance keeps you prepared for any risks and protects your business assets both digital and physical.
RingStor is a data management company that helps you to secure your data with backups, storage, and recovery products. To learn more about how to protect your digital assets, contact us today by email or call (609) 955-3422.

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