Most Cyber Insurance Policy carriers require that businesses comply with certain industry frameworks or standards as part of their underwriting process. This is because compliance with recognized cybersecurity standards can reduce the risk of cyber incidents and minimize the impact of any potential breach. It also demonstrates to the insurer that the business has implemented effective cybersecurity measures and is committed to protecting their data and systems.
For example, many insurers may require businesses to comply with industry frameworks such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework, the Payment Card Industry Data Security Standard (PCI DSS), or the Health Insurance Portability and Accountability Act (HIPAA) Security Rule. The insurer may also require regular assessments or audits to ensure that the business is maintaining compliance with these standards.
It is important for businesses to carefully review the terms and conditions of their Cyber Insurance Policy and understand the specific requirements for compliance with industry frameworks or standards. Failure to comply with these requirements could potentially result in the denial of a cyber insurance claim.
Hiring a Managed Services Provider is a way that you may be able to fast track the requirement to meet a specific compliance framework. Inquire more about this here today.