A Guide To Understanding Cyber Risk Insurance For Accounting Firms
As the frequency and severity of cyber attacks continue to rise, the importance of having cyber insurance for accounting firms becomes increasingly clear. Accounting firms handle sensitive financial information for their clients, which is obviously valuable and attractive to cybercriminals who may try to gain unauthorized access to it through various means, such as hacking or phishing attacks.
What is cyber insurance?
Cyber insurance can provide crucial protection against the devastating costs of a data breach, including fines, lawsuits, professional mitigation assistance, and other expenses. It can also help the firm recover more quickly from an attack by providing access to resources and expertise that can help them respond to the situation and minimize its impact.
In the face of evolving cyber threats, insurance companies are adapting their coverage to meet the changing landscape, and this often means raising premiums and implementing more stringent criteria for obtaining coverage.
Ransomware is on the rise.
One major factor driving this trend is the rise of ransomware attacks. Ransomware is a type of malware that steals access to a database and blocks the owner until they pay a ransom to the attackers. The recent evolution of more sophisticated and easy-to-use ransomware tools has led to a significant increase in attacks, causing insurance companies to be more cautious about offering coverage.
Many accounting firms have fallen victim to these attacks, and it is important for them to take steps to protect themselves and their clients from this growing threat.
How should accounting firms respond?
To protect against ransomware and other cyber threats, many insurance providers are now requiring businesses to have documented proof of strong cybersecurity measures, such as multi-factor authentication, encrypted backups, and regular testing and monitoring of defenses. For smaller firms without the expertise or resources to implement these measures on their own, hiring a third-party managed cybersecurity provider can be an effective solution.
Overall, the shifting landscape of cyber insurance highlights the importance of prioritizing cybersecurity for accounting firms. By taking steps to protect against cyber threats and obtaining appropriate insurance coverage, firms can safeguard their sensitive data and protect their business from financial ruin.
ForceNow can help.
If you're looking for a way to manage your cybersecurity concerns or to supplement your internal staff, consider partnering with ForceNow. We specialize in monitoring, detecting, and investigating security threats, and we are able to reduce the duration of these threats from months to minutes. In addition to our cybersecurity services, we also offer access to comprehensive and affordable cyber risk insurance plans through our partners.