Practical Ways to Combine IT and Insurance to Mitigate Cybercrime Risk in SMEs

Small and medium businesses are prime targets for cybercrime due to limited resources and cybersecurity measures. Combining robust IT practices with comprehensive cyber insurance can significantly reduce these risks. Below are practical steps SMEs can take to integrate IT and insurance for effective cybercrime mitigation. 

1. Conduct a Cyber Risk Assessment

• IT Action: Use cybersecurity tools to identify vulnerabilities in your systems, such as outdated software or weak access controls. 

• Insurance Role: Share the assessment with your insurer to tailor a policy that addresses your specific risks. 

2. Implement Multi-Layered Security Controls

• IT Action: Deploy firewalls, antivirus software, endpoint protection, and multi-factor authentication (MFA) to secure your network and devices. 

• Insurance Role: Ensure your cyber insurance policy covers incidents even when preventive controls are bypassed. 

3. Provide Employee Training

• IT Action: Conduct regular training on phishing, social engineering, and secure password practices. 

• Insurance Role: Look for policies that cover losses caused by human error, such as phishing-related financial fraud. 

4. Establish Data Backup and Recovery Plans

• IT Action: Schedule frequent backups of critical data and store them securely offsite or in the cloud. Test recovery processes regularly. 

• Insurance Role: Ensure your policy includes coverage for data restoration costs after an attack. 

5. Monitor Systems and Detect Threats Early

• IT Action: Use intrusion detection systems (IDS) and security information and event management (SIEM) tools to identify anomalies in real time. 

• Insurance Role: Opt for policies that provide access to forensic analysis and incident response services. 

6. Draft an Incident Response Plan

• IT Action: Develop a clear protocol for handling cyber incidents, including steps for containment, communication, and recovery. 

• Insurance Role: Work with your insurer to align the plan with their requirements and ensure claims processes are seamless. 

7. Leverage Cyber Insurance for Financial Protection

• IT Action: Minimise risks by continually updating systems and using best practices. 

• Insurance Role: Use cyber insurance to cover residual risks, such as:  

• Business interruption. 

• Legal costs. 

• Customer notification and credit monitoring services. 

In today’s digital age, cybercrime poses a growing threat to businesses of all sizes. Protecting yours from these risks isn’t just an IT issue, it’s a critical part of sound business hygiene and a key part of your business strategy.  

Don’t wait for a breach to happen. Take proactive steps now to build a secure foundation for your business. For further information or to discuss your situation call the Altitude Advisory office on 81721444.