If you’re a small to medium sized business (SMB), you may think that having cyber insurance is enough. Unfortunately, too many SMBs think that cyber insurance is enough to protect their business. However, if you’re not working with a managed service provider in Indianapolis (MSP), you may find that you need that cyber insurance sooner than you ever imagined. Here are five reasons why having cyber insurance alone isn’t enough.
1. Cyber Insurance Does Nothing to Prevent Cyber-Attacks
Think about your car insurance. Does it protect you from a car accident? Of course not. And cyber insurance doesn’t protect you from a cyber-attack. When you work with an MSP, they will implement systems, procedures, and policies that can help reduce the chances of a cybercriminal getting into your business.
2. Insurance Companies Don’t Issue Policies Without Meeting Their Security Requirements
The requirements vary from industry to industry and with different insurance companies. However, at a minimum you will need proof that your business has implemented many elements to prevent cybercrime and continues to update those elements. Some include:
- Staff training
- Technology policies
- Regular data backups
- Multi-factor authentication
- Firewalls
- Patch and software update management
- Data encryption
Some even require regular vulnerability assessments and system testing.
3. Filling a Claim without an MSP Can Often Lead to a Denied Claim
Cyberinsurance companies have requirements to reimburse on an incident. However, they also require proof of compliance and log files from the incident. That’s where your managed service provider in Indianapolis comes iin. They should have all the tools in their service stack to provide all the proof of compliance and log files from the incident. Without proof of proper implementation of the proper tools, they will likely deny your claim.
4. Cyber Insurance Doesn’t Restore Your Data
It only provides compensation for loss. Your MSP is the one who restores your data. They may also need to clean malware from machines or re-install them depending on the nature of the breach. Without the services your MSP provides, your business may never recover.
5. An MSP Can Help You Reduce Your Cyber Insurance Premiums
As ransomware attacks increase, so do payouts. Due to the increase of claims, insurers offer discounts to businesses who do all they can to reduce the chance of an issue. SMBs who hire a managed service provider in Indianapolis to perform 24/7 monitoring and perform regular audits and compliance checks may see a discount in their premiums or a fixed rate for multiple years.
Toucan Technology Group is Your Local MSP
As a managed service provider in Indianapolis, we offer both on-site service and remote service and help businesses based here with employees all over the globe. If you are an SMB looking for help so you can obtain cyber insurance, call us. If you need help with compliance or monitoring to stay eligible for the lowest rates on your cyber insurance, we’re here for you too. We also have answers to many of the most common cyber insurance questions, click here to read those. Call us today at (317) 376-4874 or fill out our contact form.
