In April, Direct iT President and CEO David Javaheri flew out to a cybersecurity conference to present on the same stage as business luminaries Daymond John, Robert Herjavec, and Kevin O’Leary.
Javaheri believes that small businesses are being targeted by threat actors more frequently than ever before. This would lead one to believe that businesses would prioritize investing in cybersecurity. However, according to Javaheri, it is the requirement for cybersecurity insurance that is compelling them to take more responsibility for their own and their customers’ data.
With cyber threats constantly evolving, Javaheri wants to emphasize the importance of implementing effective security measures to protect their companies and clients from potential breaches.
“Companies need to be proactive about identifying and mitigating potential risks,” Javaheri said. “By working with their insurance providers in tandem with their Managed Security Service Providers, they can ensure that their policy covers the right types of incidents and losses.”
“I run private equity for governments,” O’Leary said, continuing to note that “What they care most about is compliance.” O’Leary noted that compliance is one of the highest costs for his business, bringing in constant upgrades and tools.
Many government regulations require companies to have robust cybersecurity measures in place to protect sensitive data and systems. Likewise, Cybersecurity insurance can help companies comply with regulation standards by providing financial protection in the event of a cyber attack. Additionally, some cybersecurity insurance policies may require companies to meet certain security standards or undergo regular security assessments as a condition of coverage, which can help ensure that companies are implementing adequate cybersecurity measures.
Regularly testing your cybersecurity defenses is essential in today’s digital landscape, and not only for protecting your organization from potential attacks but also for compliance with cybersecurity insurance policies.
“Cybersecurity insurance companies are increasingly requiring their clients to perform regular security assessments and provide evidence of employee training as part of their policy requirements,” Javaheri said. “These measures not only help mitigate risks but also demonstrate a commitment to cybersecurity best practices and a proactive approach to protecting sensitive data.”