Cyber insurance is like a safety net for your business in case of a cyberattack. It can help cover the costs of a breach, including recovery and legal expenses; but in order to rely on that safety net, you need to follow the rules outlined in your cyber insurance policy. 

If you don’t meet those requirements, your claim could be denied, leaving your business to handle all the costs alone. This guide explains what these rules are, why they matter and how you can stay protected. 

What Are Cyber Insurance Rules? 

When you sign up for cyber insurance, the policy comes with conditions that you must follow to keep your coverage valid. These rules are designed to make sure your business takes basic steps to reduce the risk of cyberattacks. 

Here’s what most cyber liability insurance policies often include: 

• System Updates: Keeping all your software up to date means you have the latest security patches, which fix vulnerabilities that hackers could exploit. 

• Data Encryption: Encryption protects sensitive information by making it unreadable to anyone without proper access. Think of it like a locked safe for your data. 

• Multi-Factor Authentication (MFA): This adds an extra layer of security to your accounts by requiring more than just a password. For example, you might need a code sent to your phone to log in. 

• Cybersecurity Training: Training helps your team spot threats like phishing emails, which are designed to trick people into revealing sensitive information. 

Each of these steps may sound technical, but they’re essential to keeping your business and your cyber insurance policy safe. Think of it like car insurance. If you don’t maintain your car or follow the law, your insurer might refuse to pay after an accident. Cyber insurance works the same way. 

Why Do These Rules Matter? 

Cyber insurance companies set these rules because they reduce the likelihood of an attack. If a breach occurs and you haven’t followed these rules, your insurance provider might refuse to pay. 

For example: 

• If you don’t have MFA in place and an attacker breaks into your system, your insurance could deny your claim because MFA was a condition of the policy. 

• If you fail to encrypt laptops and one is lost or stolen, the insurer could void your coverage for failing to meet this requirement. 

• If you do everything your cyber insurance policy requires but you fail to document it, if a breach occurs, your insurer could still deny your claim due to lack of written proof. 

The Financial Risks of Non-Compliance 

Not following your cyber insurance policy’s rules could lead to: 

1. Voided Policies: Your insurance company may cancel your coverage entirely.
2. Denied Claims: You’ll be on the hook for breach costs because your insurer won’t pay.
3. Major Expenses: Recovering from a cyberattack without insurance can cost hundreds of thousands, or even millions, of dollars. 

For many businesses, these costs are more than they can handle. A single oversight could put your entire company at risk, and in some cases, your management team may even be held responsible for legal breaches.  

How to Protect Your Coverage 

To make sure your cyber insurance policy works when you need it, follow these steps: 

1. Understand Your Policy
   Take time to read your policy carefully or have an expert review it. Look for the specific security measures your insurer requires, as well as any other contract you have with any other business that mentions cyber liability.
2. Partner with Experts
   A trusted IT partner, like [Your Company Name], can help you identify gaps, meet insurance requirements and stay ahead of threats.
3. Keep Records
   Document everything, from software updates to employee training. These records prove you’ve followed the rules if you ever need to file a claim.
4. Stay Proactive
   Cybersecurity isn’t a one-time effort. Regular assessments and updates will make sure your business stays compliant moving forward. 

How GainSide Can Help 

At GainSide, we specialize in helping businesses meet cyber insurance requirements. Here’s how we can support you: 

• Cybersecurity Audits: We’ll identify risks and suggest solutions to fix them. 

• Policy Compliance Support: Our team makes sure you meet every requirement outlined in your insurance policy. 

• Ongoing Security Services: We’ll keep your systems up-to-date and protected, so you’re always prepared. 

By working with us, you can make sure your cyber policies are always valid. 

Protect Your Business, Protect Your Policy 

Your cyber insurance is a must-have safety net, but it only works if you meet the requirements. Don’t risk losing your coverage when you need it most. 

Contact GainSide today to learn how we can help you stay secure, compliant and ready for anything.