Cyberattacks such as data breaches and ransomware infections, are becoming increasingly common, with businesses being high-value targets for cyber criminals. Not only can these attacks have major impacts on costs and productivity, but they can also be detrimental to the reputation of a business and increase the likelihood of losing customers.

As a result, it’s essential for businesses of all sizes to prepare and plan for a cyber security incident.

An incident response plan can help a business mitigate risks and potential damage during a security breach and help an organisation restore business operations as quickly as possible.

Not only is a response plan an essential part of an organisation’s cyber security, but having an incident response plan can also help to increase insurability.

Incident Response and Cyber Insurance go Hand in Hand

Cyber insurance, also known as cyber liability insurance or data breach insurance, is a specialised insurance policy designed to protect organisations from the financial losses and liabilities resulting from cyberattacks and data breaches. It provides coverage for various costs, including legal expenses, forensic investigations, customer notifications, and even reputational damage.

While cyber insurance provides crucial financial protection against the costs of cyber incidents, businesses should not rely on insurance alone. It is equally important for organisations to plan and prepare for cyberattacks with a robust incident response strategy which in-turn, increases insurability.

 

How Does Incident Response Benefit a Business’s Insurability?

 

1. Mitigating Damage and Losses

Cyber insurance primarily focuses on covering financial losses incurred after a cyber incident. However, the true impact of a cyberattack goes beyond financial implications. By having an incident response plan in place, businesses can proactively mitigate the extent of damage and losses caused by an attack. A well-prepared incident response strategy can help contain the incident, minimise data breaches, and reduce operational disruptions.

2. Speedy Recovery and Continuity

Cyber insurance alone cannot guarantee quick business restoration or continuity. Without a comprehensive incident response plan, organisations may struggle to effectively respond to an attack, leading to prolonged recovery times and increased downtime. Having a well-documented incident response plan ensures that employees understand their roles and responsibilities, making it easier to recover systems and resume operations promptly.

3. Compliance and Legal Considerations

Cyberattacks often trigger legal and regulatory obligations, such as notifying affected parties and reporting the incident to authorities. Compliance with these obligations is crucial to avoid penalties and reputational damage. A well-prepared incident response plan takes into account legal requirements and ensures organisations act in accordance with regulations. Cyber insurance alone may not provide the necessary guidance and structure for complying with legal obligations, but by having an incident response plan, businesses can demonstrate compliance with these regulations, and increase their chances of insurability.

4. Preserving Reputation and Customer Trust

Reputation damage is a significant consequence of cyber incidents. While cyber insurance may cover some aspects of reputation management, such as PR and communication costs, organisations should proactively manage their reputation during and after an attack. An incident response plan helps businesses swiftly address and communicate the situation to stakeholders, preserving brand reputation and customer trust.

5. Reducing the Likelihood of Future Attacks

Cyber insurance is a reactive measure that addresses the financial impact of an incident, but it does not prevent cyberattacks from occurring. By emphasising incident response planning, organisations focus on proactive cybersecurity risk mitigation. A well prepared Incident response plan will identify vulnerabilities, establish preventive measures, and improve overall security posture. This proactive approach reduces the likelihood and impact of future cyber incidents.

 

How Incident Response and Cyber Insurance Work Together

While cyber insurance is an essential component of a comprehensive cyber risk management strategy, businesses should not rely on it as the sole defence against cyberattacks. The combination of cyber insurance and an effective incident response plan is critical for mitigating the damage caused by attacks, ensuring speedy recovery, maintaining legal compliance, preserving reputation, and proactively managing cybersecurity risks.

By investing in incident response planning alongside cyber insurance, businesses can enhance their overall cyber resilience and better protect their business and customers.

 

Upgrade your Incident Response Plan with 848 and Arctic Wolf

Complimenting 848’s Managed IT Security Services, we’ve now teamed up with the industry’s leading cybersecurity expert Arctic Wolf. This new partnership forms a powerful alliance that brings to market proactive security solutions that address the ever-evolving cyber threats.

With the partnership and support of Arctic Wolf, we can provide our clients with access to 24 x 7 SOC services that deliver end-to-end threat protection from endpoint and identity, to cloud and networks, all monitored and controlled by a leading platform and world-class security team.

Learn more about incident response planning here.