10 Easy Tips for Lowering Your Cyber Insurance Premium

By Chris Wisneski

Cyberattacks are an ever-growing threat to businesses and nonprofits. A single breach can have severe consequences, with the average cost of a data breach exceeding $4 million globally. For small to medium-sized organizations, the average cost is approximately $500,000 per incident. The cybercrime industry is projected to grow to a staggering $10.5 trillion by 2025, highlighting the importance of robust cybersecurity measures.

In response, insurance companies are becoming more stringent with their cyber policyholders. They now conduct vulnerability scans, require critical security measures like Multi-Factor Authentication (MFA), and use IT & Cybersecurity questionnaires to determine premiums.

Fortunately, proactive steps can help you reduce your cyber insurance costs and strengthen your organization's defenses. Here are 10 actionable tips to help lower your premiums and maximize your coverage.

1. Implement Multi-Factor Authentication (MFA)

Using MFA is one of the most effective ways to lower your premiums. MFA enhances security by requiring users to verify their identity with two or more factors, such as a password and a one-time code sent to their mobile device.

Given its effectiveness and simplicity, MFA is now a standard requirement for most cyber insurance policies.

2. Use a Password Manager

Password managers create and securely store strong, unique passwords for all accounts, reducing the risk of breaches due to weak or reused passwords.

Password managers also streamline operations by enabling secure password sharing without revealing them, making offboarding employees easier and reducing administrative burdens.

3. Train Your Employees

Research shows that over 90% of breaches result from human error. Security awareness training helps employees recognize phishing attempts, use strong passwords, and protect sensitive data.

In 2024, comprehensive employee training is not just a best practice—it’s considered essential for maintaining cyber insurance eligibility.

4. Regularly Update Your Software

Keeping your software updated is vital to prevent vulnerabilities. Regular updates include critical security patches that safeguard your systems from emerging threats.

Implement an automated and monitored patch management system to ensure all devices, applications, and network infrastructure (like firewalls) are up-to-date.

5. Invest in Cybersecurity Tools

Cybersecurity tools like firewalls, endpoint detection and response (EDR) solutions, and Managed Detection & Response (MDR) systems are essential for securing your network.

Working with a cybersecurity professional can help you select the right tools and optimize your defenses.

6. Develop an Incident Response Plan

Having an incident response plan in place is crucial. It provides a roadmap for containing breaches and minimizing damage, reducing the financial and operational impact of a cyberattack.

7. Ensure Business Continuity with Advanced Backup Solutions

A strong Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) are key components of a robust cybersecurity strategy.

Use image-based backups that allow for fast and comprehensive recovery. Modern solutions should include both local and cloud-based storage for maximum protection.

8. Monitor Your Systems

Continuous monitoring helps detect threats in real time and ensures all security controls are functioning properly.

Monitoring logs and activities can also help identify unusual behavior, enabling you to address issues before they escalate into significant problems.

9. Hire a Cybersecurity Professional

Cybersecurity professionals can assess your risks, implement necessary controls, and develop response plans tailored to your needs.

For organizations without dedicated internal cybersecurity resources, outsourcing this expertise is invaluable.

10. Be Proactive

Taking proactive steps now can significantly reduce your premiums. Insurers reward organizations that demonstrate a commitment to risk reduction, leading to lower premiums and fewer claims that could drive up costs.

Cyber Insurance Cost Savings Are Achievable

Lowering your cyber insurance premiums doesn’t have to be overwhelming. By addressing these ten areas, you can make your organization more resilient while accessing more affordable coverage.

Get Started with a Complimentary Cyber Health Check

Are you ready to strengthen your defenses and reduce your cyber insurance premiums? Contact us today for a Cyber Health Check to evaluate your current cybersecurity posture and identify ways to protect your organization.