VLCM's Cyber Insurance Readiness Checklist

A cyber insurance readiness checklist is a helpful tool for organizations to assess their readiness for purchasing and implementing cyber insurance. This checklist can assist in identifying potential risks and areas for improvement in an organization's cybersecurity posture, making it easier to make informed decisions about cyber insurance coverage.

To get started, organizations can use the below comprehensive cyber insurance readiness checklist to gauge and improve their current cyber defenses: 

1. Assess your current cyber risks

   • Evaluate current cyber risks, including the likelihood and potential impact of a data breach or cyber attack. To do this, you can:

   • Determine which assets are critical to operations, then prioritize protection. This may include sensitive data, such as personal and financial information, as well as key systems and infrastructure.
   • Conduct a threat analysis to identify potential sources of cyber risk, including internal and external threats, such as cybercriminals, state-sponsored hackers, and malicious insiders.
   • Assess the vulnerabilities of critical assets and identify potential points of failure. This may involve conducting penetration testing, network scans, and other security assessments.
   • Evaluate the likelihood and potential impact of potential cyber incidents, including data breaches and cyber-attacks, and prioritize the mitigation of high-risk vulnerabilities.

2. Evaluate your current cybersecurity measures 

   • Assess the current cybersecurity measures in place, including firewalls, anti-virus software, and incident response plans. Consider seeking an external evaluation of the organization's cyber risk, including a security audit and penetration testing, to identify potential vulnerabilities and areas for improvement.

3. Assess third-party risk 

   • Evaluate the risk posed by third-party vendors and partners, including their security measures and incident response processes. To begin, we recommend following a six-step process:

   • Evaluate security measures: Assess the security measures of each third-party vendor, including their data protection practices, incident response procedures, and overall security posture.
   • Conduct due diligence: Conduct thorough due diligence on each third-party vendor, including background checks, references, and an evaluation of their reputation and track record.
   • Evaluate contractual obligations: Review contracts and service level agreements to ensure that third-party vendors are obligated to meet appropriate security standards and to report any incidents in a timely manner.
   • Establish security protocols: Establish security protocols and guidelines for third-party vendors to follow, including guidelines for access, data protection, and incident response.
   • Regular monitoring: Regularly monitor third-party vendors to ensure that they are meeting established security standards and to identify any potential risks or vulnerabilities.

4. Data inventory

   • Conduct a comprehensive inventory of the organization's sensitive data, including personal and financial information, to ensure that it is properly protected.

5. Employee training

   • Ensure that all employees receive regular cybersecurity training to increase awareness of potential risks and minimize the risk of human error.

6. Incident response plan

   • Develop and test an incident response plan to ensure that the organization can respond quickly and effectively in the event of a data breach or cyber-attack.

7. Cyber insurance coverage

   • Evaluate the need for cyber insurance coverage and review available policies to determine the best options for the organization.

8. Due diligence

   • Conduct thorough due diligence on cyber insurance providers to ensure that they are reputable and have the necessary expertise and resources to provide adequate coverage.

By following this checklist, organizations can assess their level of cyber risk, evaluate their current cybersecurity measures, and determine the best options for cyber insurance coverage.

Should you need any help with the above tasks, VLCM’s Cybersecurity Team is ready to help your organization be more cyber secure. To get started on the path to cyber insurance readiness, please visit www.vlcm.com/contact-cybersecurity.