In 2022, the average cost of a data breach within the U.S. hit an all-time high of $9.44 million. This significant rise in cyber crime, both in terms of cost and frequency, has put a greater emphasis on the need for businesses to ensure data security.
To protect against losses stemming from cyberattacks, many organizations around the world have started investing in cyber insurance policies. For better security and to protect company pockets, cyber insurance compliance has rightfully become a priority for all types of businesses.
Learn the regulations businesses must follow, how cyber insurance can protect your business, and what you can do to obtain it.
Top 4 Common Types of Compliance Regulations for Businesses
When it comes to cyber insurance compliance requirements, there are several regulations that must be observed. The most notable types of regulations businesses must adhere to are the following:
1. HIPAA (The Health Insurance Portability and Accountability Act)
HIPAA, a federal law introduced in 1996, was created to protect the privacy of patient information. It sets standards for protecting sensitive data, such as protected health information (PHI). Any business that handles PHI must abide by HIPAA regulations to avoid serious penalties resulting from a data breach.
2. GDPR (General Data Protection Regulation)
GDPR is a set of regulations that apply to any company that collects or processes personal data of EU citizens. It establishes a framework for organizations to take responsibility for the security of personal data.
3. GLBA (Gramm–Leach–Bliley Act)
GLBA sets out specific requirements for financial institutions on how they must protect their customers’ private information. It is intended to give consumers more control over the privacy and security of their financial records. Businesses that store credit card information are also liable under GLBA.
4. CCPA (California Consumer Privacy Act)
CCPA was introduced in 2020 and was made to mimic the regulations under GDPR. It requires businesses that process customer data to comply with certain provisions, such as providing customers with access to their own data and methods for deleting it. If businesses operate in California, or businesses have consumers from California, they must follow CCPA.
What Is Cyber Insurance Compliance?
When investing in a cyber insurance policy, companies must ensure that they are compliant with the various regulations outlined above. Obtaining cyber insurance is no easy feat. Businesses must prove that they are cyber ready. In other words, businesses must show that they have security measures in place to protect data.
Plus, before a business can apply for coverage, cyber insurance compliance will require businesses to meet security requirements like the following:
- Employee Security Awareness Training: Companies must provide their employees with training to ensure their employees understand and adhere to the security policies that are in place.
- Managed Firewalls: Businesses must have managed firewalls installed on all of their systems to protect against malicious threats coming from outside sources.
- Email Security: Organizations should utilize a secure email system that blocks any potential malicious emails from entering the corporate network.
- Data Backup and Business Continuity: This is an essential requirement for cyber insurance coverage because it ensures that companies can continue operations if there is ever a breach or network outage.
How Can an MSP Help Your Business Meet Cyber Insurance Compliance Requirements?
Many businesses underestimate how difficult it can be to meet cybersecurity and cyber insurance compliance requirements to obtain coverage. Fortunately, Managed Service Providers (MSPs) can provide the necessary tools and resources to ensure compliance.
An MSP can help your business by offering the following:
- Monitoring: Providing 24/7 monitoring of your systems and networks to identify any potential vulnerabilities.
- Security Tools: Deploying security tools such as firewalls, anti-virus software and intrusion detection systems.
- Secure Cloud: Implementing secure cloud solutions that allow you to protect confidential data in the cloud.
- Protection: Protecting against malicious email threats with advanced email filtering solutions.
Fusion Technology: Your Cyber Insurance Compliance Partner
At Fusion Technology, we understand the importance of meeting cyber insurance compliance requirements for businesses of all sizes. Our team is dedicated to providing companies with the tools and resources they need to remain compliant.
Contact us today to learn more about how we can help your business stay secure, compliant, and insured.