How Does Cyber Insurance & Compliance Protect Your Company?
Insurance is one of the most important tools we have for mitigating risk. We have car insurance, home insurance, renter insurance, and the list goes on and on. There’s insurance for almost every type of major event that could happen and cybersecurity is no different. Cyber insurance protects you against the costs associated with suffering from a cyberattack. It includes things such as damage to software and hardware, loss of business, damage to the company’s reputation, costs associated with lawsuits, and helping your customers. Cyber insurance is one of the most important proactive investments you can make in cybersecurity.
Compliance frameworks are regulations that affect companies based on location or industry. Simply put, compliance is a set of rules that businesses must follow, cybersecurity compliance focuses on protecting personally identifiable information. This is any information that can be linked back to an individual, such as first and last name, date of birth, or social security number.
Let’s look at GDPR for example, this stands for General Data Protection Regulation and protects the data privacy of all residents in the UK. It gives them certain data privacy rights that any company collecting EU citizen information needs to abide by. Another example is HIPAA, Health Insurance Portability and Accountability Act, which regulates how health care institutions collect, use, and protect personally identifiable health information. These compliance frameworks aim to regulate how companies collect, protect, and use personal data and act as a minimum standard for a company’s cybersecurity operations.
Ensuring Reliable Coverage
To make sure you are compliant with these frameworks, the most effective way to do it is through good security testing. You should have outside sources test that you have all of the required security controls in place and that they are functioning as expected. Breach and attack emulation (BAE) is the best way to test for compliance. BAE solutions can test your companies security controls based on the latest security threats and provide you with immediate feedback on what you need to fix to be compliant. Also, BAE provides continuous security validation. Typical penetration tests only provide point-in-time assessments of your company’s security operations, however, companies constantly change their infrastructure and operations. Therefore, you want a solution that can ensure compliance over a long time, not just at the moment the test was done.
Also, BAE has the benefit of getting you lower costs on your cyber insurance. Like other forms of insurance if you can prove that you are a lower risk for an event happening, then you can get a much lower rate. By having continuous security validation done you can prove to insurance providers that you can remain compliant and secure over a long period. This will get you lower premiums than companies that don’t do any testing or only do point-in-time assessments.
Lastly, BAE solutions will give you the evidence you need to pass compliance audits. For every major regulation, you will be required to have audits done to prove that you are meeting the standards of the compliance framework. Auditors want to see that you not only have the right tools and processes in place, but they want the confirmation that they’re working as they should.
If you’re interested in getting a BAE solution to test your company’s compliance, you can book a demo of rThreat’s BAE solution here.
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