MSP in Melbourne Shares Cyber Insurance Checklist for Businesses

While cyber insurance is increasingly common among businesses worldwide, adoption rates in Australia are strikingly low. The Australian business adoption rate for cyber insurance is 25% while the global average is about 47%. Low awareness is the biggest reason. That’s why using a comprehensive cyber insurance coverage guide may help.

The cyber liability insurance sector is also relatively young in Australia. Therefore, it’s important to note before we get started that this article shared by leading MSP in Melbourne was written and published in 2024. Changes are possible if you are reading this article at a much later date.

However, if you’re considering cyber insurance and are (like many business owners) unsure what you need to do to meet cyber insurance requirements, this is your starting point. Although, please also note that certain requirements may also vary by industry.

Typical Cyber Insurance Coverage Policy Requirements in Australia

Cyber insurance is not mandatory in Australia, so there aren’t any specific rules governing what must be in a cyber insurer’s policy. Qualification requirements may vary by provider, but this is what you typically need in most cases.

Data Management Policies

Effective data management and protection policies must be established, particularly for sensitive data or personal information. Since individuals have the right to seek compensation if their information is breached, a lack of proper data handling increases risks to the insurer.

Risk Assessments

Companies often need to show that they conform to specific cyber security frameworks like Essential 8, ISO 27001, or NIST. This includes regular risk assessments, implementing mitigation strategies, and maintaining strong security measures like firewalls, antivirus software, and security audits.

An Incident Response Plan

Insurers usually require a formal incident response plan that outlines procedures for handling and reporting cyber incidents. Be prepared to present documentation that showcases that your company is ready to respond and mitigate the effects of potential cyber attacks.

Little History of Incidents

A history of previous cyber incidents and how your company responded to them can impact your eligibility. However, if you have had an issue in the past, don’t panic. You should still be able to find insurance if you can show that you have since improved your protection measures.

Financial Stability

Some insurers assess the financial stability of a company to ensure it can withstand potential cyber threats without excessive risk to the insurer. As such, you should be prepared to present proof of your financial stability to potential insurers.

What to Check For Before You Apply for Cyber Insurance

What Security Measures Do You Have in Place?

16% of organisations who experienced data loss equivalent to $1 million or more had this experience simply due to inadequate security controls. While insurance does cover the costs of these damages, no insurer wants to pay such a hefty cost. Therefore, it’s critical that you can prove that you aren’t likely to be one of those stories.

Do You Regularly Back up Your Data (and Test These Backups)?

Regular data backups are essential for any business's cyber resilience strategy. However, merely backing up data isn't enough; you must also conduct regular tests to ensure these backups work. Documentation of these tests ensures the effectiveness of strategy.

Are You Using Multi-Factor Authentication (MFA)?

MFA is becoming a standard practice, but not everyone is using it as often as they should. Primarily, this is for convenience reasons as 67% of professionals agree that additional layers of security cause a tedious user experience.

Nevertheless, using MFA at minimum will be a requirement for many cyber insurance providers.

Do You Verify Any Changes in Customer Details & Check All Financial Transactions Carefully?

Verifying changes in customer details and meticulously checking all financial transactions are vital steps in preventing cyber fraud. These practices help ensure that unauthorised changes or fraudulent transactions are caught early before they can cause significant harm. Showing your insurer that you’re performing these steps will make you a more attractive client.

Does Your Insurance Cover Both Damages to Your Business & Claims from Others?

Going over this list is more for your benefit than it is to meet qualification requirements. Legal fees can sometimes be the most expensive part of mitigating a data loss incident, so you’ll likely want the additional financial support if needed.

Increase Your Odds of Qualification & Lower Your Premiums With Cyber Experts Melbourne MSP

Qualifying for insurance is only half the battle. If your risk profile is low enough to simply qualify, you may not be getting the best deal. A higher risk profile leads to higher cost premiums, even if it is technically low enough to qualify.

Partnering with a managed cyber security company can help lower your risk profile, and your premiums. Sensible Business Solutions is an excellent option. As an Australian MSP, we understand the nuances of national requirements and are happy to help you meet them.

Reach out to the most trusted managed IT services provider in Melbourne today to find out more about what else we can do for you.

Contact Information:

Sensible Business Solutions - Melbourne Managed IT Services Company

Collins Square, Level 23, Tower 5/727 Collins St, Docklands
Melbourne, VIC 3008
Australia

Sensible Business Solutions
+61 3 0073 6742
https://sensible.com.au/