National Cyber Security Awareness Month: Cyber Preparedness & Insurance

There is a concerning trend in cyber preparedness among businesses, revealing a huge lack of proactive measures as depicted by the 2023 Travelers Risk Index Survey. Despite 90% of surveyed companies claiming confidence in their cybersecurity practices, a significant portion of businesses, especially small businesses, lack basic, fundamental protections. The survey alone concluded that a quarter of businesses do not even implement basic measures like firewall/virus protection, data backup, and password updates, leaving these businesses completely vulnerable to cyber-attacks. Other businesses that do have some risk mitigation measures employed do not have complete cyber protection and still have gaps in their defenses. The survey found that:

• Endpoint Detection and Response (EDR): 64% of businesses do not use EDR, a crucial tool for identifying and mitigating cyber threats.
• Incident Response (IR) Plan: 50% lack an IR plan, essential for effectively managing and recovering from cyber incidents.
• Multi Factor Authentication (MFA): 44% don't use MFA, despite its effectiveness in preventing account compromises. Lack of awareness and perceived inconvenience are cited reasons.
• Small Businesses: 85% don't use EDR, 83% lack a post-breach team, 73% lack an IR plan, and 61% don't use MFA for remote/admin access, indicating higher vulnerability among small businesses.
  
  

One of the most important preventive measures to have is Cyber Insurance. While 74% of businesses acknowledge its critical role, a significant portion, including 66% of small businesses, remain unprotected. Cyber liability insurance is vital to a strong cyber defense: covering costs associated with breaches, lost income, customer notifications, data recovery, and more. As cyber threats evolve, having both cyber liability insurance and a robust cybersecurity plan is imperative for businesses of all sizes. Many plans include tailored cyber coverage addressing forensic investigations, litigation expenses, crisis management, business interruption, and more, providing businesses with essential financial safeguards against cyberattacks.

To learn more about mitigating cybersecurity risks or acquiring cyber insurance, reach out to an agent at Diversified, or visit:https://www.travelers.com/resources/risk-index/2023-cyber-top-business-risk.

DII is your partner in business safety and mitigating cybersecurity risks. Our team of experts can work with you to understand the best ways to protect your employees and virtual assets from online attacks. Please contact your DII representative for more information. #October #CyberSecurity