Right now, businesses across the East of England are dealing with an ever-increasing frequency and sophistication of cyber threats. This means that cybersecurity settings have become more critical than ever. Without adequate cybersecurity measures, businesses are at risk of data breaches, financial losses, and damage to their reputation.
According to the latest government statistics, half of businesses (50%) and around a third of charities (32%) reported having experienced some form of cyber security breach or attack in the last 12 months. These attacks include phishing, ransomware, and DDoS attacks, among others. This is a massive increase from the previous year, with 32% of businesses and 24% of charities overall recalling any breaches or attacks in 2022.
This vast increase in cyberattacks has meant businesses are exploring various security precautions, including cybersecurity insurance, to ensure they are protected should their business be exposed to a cyberattack or data breach.
While insurance can provide a vital safety net, could additional cybersecurity measures like Cyber Essentials accreditation reduce your annual insurance premiums? The answer is yes. Insurance companies often view businesses with robust cybersecurity measures more favourably, as they are seen as less risky. This can lead to lower insurance premiums for businesses with cybersecurity accreditations.
Here at Lucid Systems, we always want our clients to maximise their budget and secure a better return on their investment. That’s why we’re delving into this issue to explain how investing in cybersecurity defences could result in lower insurance premiums for you.
Understanding Cyber Insurance
As you organise your business insurance, you will already be searching for policies such as employer liability insurance, public liability insurance and professional indemnity insurance.
But did you know that you can also take out specific cyber insurance policies?
Insurance companies like Hiscox provide financial protection against cyber-related incidents such as data breaches, ransomware attacks, and business interruptions. These policies help cover expenses associated with investigating and mitigating breaches, security failures, legal fees, and even extortion payments. As cyber threats continue to evolve, cyber insurance has become crucial for businesses looking to safeguard their operations and finances. Without this type of insurance, businesses could face significant financial losses and damage to their reputation in the event of a cyber incident.
The importance of cybersecurity accreditations
Nationally-recognised accreditations such as Cyber Essentials and Cyber Essentials Plus are valuable tools for protecting your business against the growing number of cyberattacks.
The National Cyber Security Centre (NCSC) and the UK government created Cyber Essentials, which is designed to shield you from common threats. It focuses on five key areas: secure connections, firewalls, access, malware, patch management, and software updates, and offers a guarantee that your online protection meets an information security standard. For many businesses, holding a Cyber Essentials certificate is essential if you wish to be eligible for public sector tenders and contracts.
Cyber Essentials Plus takes the protection that step further. It requires more rigorous testing and includes hands-on technical verification by a technical expert to identify and rectify any internal or external vulnerabilities.
This means that businesses with Cyber Essentials Plus accreditation have undergone a more thorough assessment of their cybersecurity measures.
If you can show that you are continuously investing in accreditations that prove you are taking cybersecurity seriously, you may be more likely to see a greater reduction in your insurance premiums.
As a managed service provider, we offer comprehensive support in obtaining both Cyber Essentials and Cyber Essentials Plus accreditations. This includes guiding you through the application process, assisting with the implementation of necessary security measures, and conducting the required audits. By helping you demonstrate your commitment to cybersecurity and reduce your vulnerability to attacks, we can lower your insurance premiums, giving you a better return on your investment.
Could you lower insurance premiums through proactive measures?
Although not all insurance providers expressly state that obtaining a Cyber Essentials accreditation can reduce insurance premiums, it is important to keep in mind that insurers will typically view a company that has achieved accreditation favourably.
To put it to the test, we explored the Hiscox online quote generator to see how different certifications could impact insurance premiums.
We used the example of a sole trader working in the PR industry within the UK. Through a quick search, we found that having a Cyber Essentials accreditation reduced the insurance premium by almost 10%. Changing the accreditation to a Cyber Essentials Plus certification reduced the premium by nearly 15% (compared to the baseline insurance cost). These potential cost savings could significantly contribute to your business’s financial security.
Of course, this is just a single example.
Different businesses in different sectors, with a range of employees and office locations, may discover different results.
We know how important it is for all businesses in Suffolk, Norfolk and Essex to reduce their running costs as much as possible to boost profit margins. This shows that by strengthening your investment in your cybersecurity defences, you could be reducing your costs in other areas of your business.
Proactivity will always pay off.
When it comes to cybersecurity, taking a proactive stance is always more cost-effective than reacting to a breach. By investing in robust cyber defences, you not only strengthen your security but also have the power to influence your insurance premiums. By prioritising security accreditations and implementing comprehensive cybersecurity measures, businesses can reduce the risk of costly breaches and demonstrate their commitment to safeguarding sensitive data. This gives you the power to control your security and insurance costs, empowering you to protect your business.
Your partner in Cybersecurity
At Lucid Systems, we understand the importance of cybersecurity in protecting businesses against the ever-increasing risk of cyber threats. As a certified Microsoft Partner, we use cutting-edge technology to deliver tailored solutions that meet the unique needs of companies across East Anglia. Our team of experts can guide you through the process of obtaining Cyber Essentials or Cyber Essentials Plus, as well as draft policies and procedures to keep your business safe. This reassurance of our expertise and support can help you feel confident and secure in your cybersecurity efforts.
In addition to our Microsoft partnership, we hold an ISO 27001 accreditation, which demonstrates our commitment to maintaining the highest standards of information security management. This internationally recognised certificate showcases our dedication to protecting your data and ensuring the confidentiality of your information assets.
Contact us to learn more about our cybersecurity services and take the first step towards securing your business.
