There’s a long list of compliance requirements for businesses. PCI and HIPAA compliance are long-standing regulations that have driven credit card acceptance and healthcare entities for decades. Some that have tried to improve the security posture of impacted businesses, like CMMC with manufacturers, but have struggled to gain implementation and adoption. So, what is the strongest driver of compliance for your business today? Insurance and Supply Chain.
Insurers are Driving Compliance
Cyber Liability Insurance has been around quite a while, but due to the significant increase in breach incidents, they can no longer insure just any business. Insurers are losing money and that means changes.
In a previous blog, we talked about the soaring cost of insurance and the list of requirements businesses must prove before purchasing a policy and before getting a claim paid. Some things on the list are basic best cybersecurity practices to which any business should adhere. The requirements are NOT standard – each insurer comes up with their own.
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What is Cyber Liability Insurance
It’s not just about requirements to obtain an insurance policy. If you have an incident, your insurance company offers wonderful assistance to get your business back up and running. We all know the cost of downtime. But when the dust settles, your insurer will dispatch third party auditors to “trust but verify” your attestation of having the requirements in place. If they find they are not in place, you can be charged with fraud. The insurance company will seek to recover their payout.
Your Supply Chain is Driving Compliance
The business you do business with have compliance requirements of their own. This is where “peer-pressure” cannot be ignored. Many are looking at the same requirements from their cyber liability insurance provider – Supply Chain Management. It is common for your business partners to require YOUR business to implement basic best practice cybersecurity measures to maintain THEIR compliance.
The Pressure is On – Build Your Team
If you want to stay in business, security and compliance needs an elevated role. Weave them into the fabric of your business – from your front of the house employee, to the backroom technology. Then, find a good partners who can react quickly when there is an incident.
✅ Cyber Liability Insurance Provider
✅ Legal Partner
✅ Financial Partner
✅ IT Partner
✅ Compliance Partner
✅ Public Relations Partner