In law enforcement, SWAT team members often serve the department with normal responsibilities but are called in for SWAT-specific duties as needed. The same can be set up for small and midsize businesses (SMBs) that cannot afford to have full-time or robust cybersecurity and incident response (CSIRT) teams but rather pull CSIRT members from multiple teams across the organization.
For SMBs, even CSIRT team members may not be enough during a substantial cyber event. This is when insurance becomes invaluable, offering not just financial protection but access to crucial expertise when it is needed most.
Start with a sober assessment of your current capabilities and gaps. Engaging members of your CSIRT and leadership team up front can help in the assessment and determine if you need a policy and what coverage should be considered. Evaluating your capabilities and needs will also help shape the policy and coverages you pursue. I outline here a few of the benefits and areas for evaluation.
Expert Support
Cyber insurance includes crucial financial coverage. Moreover, for SMBs, access to deep subject matter expertise in the event of a security breach may be of equal or greater value. Evaluate your capabilities for the following:
- Immediate response: When a breach occurs, time is of the essence. Cyber insurance policies often include access to an incident response team that can be activated immediately. This team typically includes the following:
- IT forensics experts
- Legal counsel specializing in data privacy and breach notification laws
- Public relations professionals experienced in crisis communication
For SMBs that do not have these specialists on staff, this rapid access to expertise can be game-changing in managing the crisis effectively.
- Navigating complex regulations: Data breach notification laws vary by state and industry. For SMBs without dedicated legal teams, understanding and complying with these regulations can be overwhelming. Cyber insurance provides access to legal experts who can guide you through the process, helping you avoid costly fines and legal issues.
- Forensic investigation: Understanding how a breach occurred is crucial for preventing future incidents. Cyber insurance often covers the cost of forensic investigations conducted by top-tier cybersecurity firms. These investigations help understand the breach and improve your security posture.
- Reputation management: For SMBs, reputation is everything. A mishandled data breach can devastate a small business’s reputation. Public relations experts provided through cyber insurance can help craft communications to customers, partners, and the public, potentially saving your business’s reputation.
- Customer support services: Many policies cover the cost of setting up call centers or providing credit monitoring services for affected customers. These services, which would be prohibitively expensive for most SMBs to provide on their own, can go a long way in maintaining customer trust.
- Post-incident improvements: After a breach, cyber insurance can cover the cost of the security improvements that the forensic team recommends. This helps prevent future incidents and demonstrates to customers and partners that you take cybersecurity seriously.
The Financial Perspective
The expertise provided is invaluable, but it is important to remember the financial protection cyber insurance offers. The costs associated with a data breach—including notification, credit monitoring, legal fees, and potential fines—can be disastrous for an SMB. Cyber insurance helps mitigate these costs, potentially saving your business from financial ruin.
Conclusion
A self-review will benefit your in-house practice and sharpen your approach to cyber insurance. After completing a critical self-review, you can focus on improving areas where you want to retain expertise and outsource those areas in which having a third party on-call is more practical.
In an era where cyber threats are constantly evolving, having a team of experts on standby can make the difference between a managed incident and a business-ending crisis. After completing an evaluation and determining your organization’s needs, you will be prepared for what sometimes feels like the inevitable.
