Banks are a tempting target for cyber attackers. Even though cyber insurance isn’t required by regulators, it’s essential to the survival of a bank in the case of a breach. Cyber insurance is different from a banker’s fraud bond that covers the bank’s losses. This type of insurance can be used to cover third-party damages, related legal fees, and more.
How MSSPs Help Banks Obtain Cyber Insurance
Cyber insurance for banks covers a variety of expenses and incidents, depending on the policy. What insurance providers have in common is that they typically want to know what banks are doing to minimize the risk of cyber attacks.
Insurance companies assess risk and determine premiums through questionnaires. These questionnaires have gotten longer and more extensive than they have been in the past. It’s important to be as accurate and thorough as possible to make sure inaccuracies don’t later void the policy. Managed security service providers (MSSPs) can help banks with the questionnaire process, as well as with maintaining cybersecurity best practices.
The questionnaires are likely to ask for a lot of detail about the types of technical, administrative, and procedural controls the bank has for its cybersecurity. Though the requirements are up to each carrier, they may ask about whether you regularly:
- Patch vulnerabilities
- Secure devices
- Deploy firewalls
- Analyze security logs
- Use multifactor authentication
- Provide employee cybersecurity training
- Implement other technical controls
Not all of those practices are necessarily requirements, but they influence how expensive the premiums will be. To keep insurance premiums down, it’s important for banks to implement a comprehensive risk mitigation strategy.
A cybersecurity managed service and security provider like Corsica Technologies can help banks complete their questionnaires. They can also help those that didn’t previously qualify or couldn’t renew their policies because they’re missing key pieces of their security operations.
Getting the Right Insurance and Cybersecurity for Banks
Cybersecurity insurance is essential for banks, and there are many options to choose from. In particular, look for carriers that specialize in offerings for financial institutions. They may offer packages especially for community, regional, and smaller banks.
Policies may cover costs like:
- Legal expenses
- Third-party damages
- Data loss
- Income loss
- Third-party damages
- Intellectual property liability
- Reputation management
- Social media messaging
- Customer notification
- Credit monitoring for customers
- Ransomware, malware, and extortion mitigation
It’s important to read a policy to see what is and isn’t covered, as well as claim and policy limits. It’s also possible to negotiate terms and details with your insurance carrier.
Partner with an Expert in Cybersecurity for Banks
Trust is essential when it comes to customers’ relationships with their banks. Cyber insurance can help maintain that trust in the aftermath of a cyber attack. It also helps to have a trusted cybersecurity partner on your side before, during, and after any events.
Corsica helps clients prepare for, defend against, and recover from cyber attacks. If you want to get more information on cyber risk management and insurance, our team of experts can help you learn more about your options.
