How Managed Service Providers help small businesses secure basic cyber insurance coverage

Cybersecurity is a concern for companies of all sizes, but it can be especially important for smaller businesses that are less likely to have dedicated technical staff to ensure the right controls are in place to protect them. In this article, we explain why it makes sense for these companies to work with Managed Service Providers to strengthen their security processes and increase their chances of receiving cyber liability insurance coverage as insurers continue to raise the bar.

In recent years we have witnessed an avalanche of interest in cyber liability insurance. And this interest shows no signs of abating. In fact, a recent report by Howden Insurance Brokers states that the number of brokers reporting an increasing demand for cyber liability insurance coverage has increased by 89% and the number of brokers reporting an increase in claims has increased by 72%.

It will come as no surprise that due to this demand, insurers are particularly careful in how they build their policies to minimize the risk of major cyber events. This is especially true if the company seeking coverage has not taken adequate measures to minimize cyber risks. After researching the basics of cyber liability insurance for small and medium-sized businesses, it seems that there are several approaches that companies can take to increase their chances of getting an insurance policy. But what about businesses that are consistently on the smaller side of the SME spectrum?

Cyber Small Business Insurance: Is It Really Necessary?

There may be a perception that smaller businesses are less likely to be targeted by bad actors, sliding under the net while they focus on “bigger fish”. However, according to Security Magazine, 43% of all cyberattacks target small businesses, and 60% of all small businesses that fall victim to a data breach permanently close their doors within six months of the attack. In fact, most medium to large organizations will survive a major cyberattack. they will be damaged, but they will overcome it. Unfortunately, at the lower end of the market, it’s really an existential threat, and that shouldn’t be – small business owners should be free to build their businesses and not have to worry about cyber risk.

Fortunately, cyber insurers have a lot to offer to help small businesses – cyber tips to help you understand what you need and technical/financial assistance in case the worst happens. The only thing they don’t provide is the technical support to take those few critical steps that will better protect your small business, and that’s where managed service providers add such value. They have the special technical knowledge to develop and manage the kind of cybersecurity solution required to meet the minimum requirements of your insurance policy.

So how do smaller companies with about 20-50 full-time employees, ensure a strong cybersecurity posture? Especially when they have to wear a lot of other hats to ensure the smooth running of the day-to-day business.

A fast-growing response to this is to leverage a managed service provider to help them back up their data, deploy endpoint protection, and ensure their employees have reliable access to the work they do. This last step is where we see a huge amount of interest from insurers and small businesses as they look for an easy way to mitigate their common risk without struggling financially.

ITCS Information Technology & Cyber Security has a range of solutions, including Cisco Duo solutions, that could be recommended to ensure a satisfactory level of cybersecurity depending on your business needs.

If you are looking for a reliable MSP contact us directly!

Article source: https://duo.com/blog/how-msps-help-small-businesses-with-cyber-insurance-cover