2024 Insights on Cybersecurity and Cyber Insurance
On Aug. 20, Atlas Professional Services’ VP of Business Development Eric Papp and Billy West, President of insurance brokerage M.E. Wilson Company co-hosted a free webinar, “Unlocking the Mysteries of Cybersecurity.” Experts Michael Gaio of Arctic Wolf, one of Atlas’s cybersecurity partners, and Patrick Makohin of insurance company Brown & Riding, shared valuable insights on cybersecurity and cyber insurance in today’s high-threat environment.
Over 85 people registered for the event, and over 50 attended live. Keep reading for a recap of what experts covered in this one-hour educational event.
Cyber Risk Management
Michael Gaio, Southeast Director of Arctic Wolf, focused his discussion around the cyber threat landscape, how security and insurance converge, telling your cyber risk story and an overview of the cyber insurance market.
According to Michael, “The best cybersecurity risk protection is one that takes into account the worst-case scenario.”
He noted it’s important for executives to understand that for every large cyberattack that makes the news, there are thousands of small- and medium-sized businesses (SMBs) that are attacked. Cybercriminals tend to see SMBs as easy targets because they may not be investing resources in cybersecurity to protect themselves.
The potential expense for a business dealing with and recovering from a security breach can be devastating. That’s why it’s critical to both protect the business from potential threats by partnering with a managed services provider (MSP) like Atlas and security service partners like Arctic Wolf.
In addition, obtaining cyber insurance is another necessary protection, because it’s impossible to completely prevent cyberattacks, even with the best security controls in place. Cyber insurance is one way to move risk away from the business and to a third-party.
While the cyber insurance market is getting more competitive and volatile, businesses can make efforts to increase their ability to become more insurable and take control of escalating costs. In fact, low-risk clients with good security protocols in place should be in a strong position when it comes to finding cyber insurance and an acceptable premium.
Michael offered a handful of helpful online resources, including:
- AWN Labs Threat Reports
- Cost of a Breach Calculator
- State of Cyber Security Report
- State of Cyber Insurance Report
Cyber Insurance Insights
After Michael laid the foundation of understanding today’s cybersecurity risks and how they converge with insurance, Patrick shared detailed information about cyber risk and insurance. He defined cyber insurance, debunked common cyber insurance misconceptions and covered different types of cyber claims.
In short, cyber insurance is protection from financial losses caused by cyberattacks, data breaches and other cyber-related incidents. Cyber insurance helps organizations mitigate their exposure to risks by transferring financial liability related to cybersecurity and privacy events.
Cyber insurance can cover a variety of costs, such as:
- Data recovery
- Legal support
- Third-party claims
- Forensic costs
Of all cyberattacks, 96% are directed at SMBs. Not only can these businesses be considered easy targets, but they also can serve as a gateway to larger organizations or be collateral damage when larger partner organizations are attacked.
Patrick shared common myths about cyber insurance and revealed the truth behind them. For example, an SMB may believe they don’t need insurance because they invest in IT security. However, even the most thorough, cutting-edge security protocols can’t guarantee the business won’t be attacked.
As another example, some SMBs think that because they have other lines of insurance, they don’t need cyber insurance. But, traditional insurance policies often have inadequate cyber coverage compared to what’s covered in stand-alone cyber policies.
Patrick also outlined to attendees the three main categories that cyber claims fall into:
- Theft of funds
- Theft of data
- Damage to digital assets
Wrap-Up
The Atlas team expresses a huge thank you to M.E. Wilson and presenters Michael and Patrick for sharing their time and expertise with attendees.
We plan to host more educational events in the future. If you’d like to receive notice of upcoming webinars and in-person events, please join our mailing list.
