Control Requirement 5.1.2.4: The Importance of Cyber Security Insurance
Control requirement 5.1.2.4 of the CAN/DGSI 104:2021 Rev 1 2024 standard emphasizes the need for organizations to consider purchasing a cyber security insurance policy that includes coverage for incident response and recovery activities. This blog explores the importance of such insurance and provides guidance on how to approach this requirement.
Why Consider Cyber Security Insurance?
Cyber security insurance is designed to help organizations mitigate the financial impact of cyber incidents. These incidents can range from data breaches to ransomware attacks, and the costs associated with them can be substantial. By having a cyber security insurance policy in place, organizations can ensure they have the necessary resources to respond to and recover from such incidents effectively.
Key Elements of Control Requirement 5.1.2.4
Coverage for Incident Response and Recovery: The insurance policy should include coverage for activities related to incident response and recovery. This ensures that the organization can quickly and efficiently address any cyber incidents that occur.
Rationale for Not Purchasing Insurance: If an organization decides not to purchase cyber security insurance, it must provide a rationale for this decision. This rationale must be well-documented and based on a thorough risk assessment.
Steps to Implement Control Requirement 5.1.2.4
Research Insurance Providers: Look for insurance providers that offer policies tailored to your organization’s needs. Consider factors such as coverage limits, exclusions, and the provider’s reputation.
Review Policy Options: Carefully review the policy options available to ensure they include coverage for incident response and recovery activities. Pay attention to any exclusions or limitations that may affect your coverage.
Benefits of Cyber Security Insurance
Having a cyber security insurance policy in place offers several benefits:
Financial Protection: Insurance can help cover the costs associated with responding to and recovering from a cyber incident, reducing the financial burden on your organization.
Enhanced Preparedness: Knowing that you have insurance coverage can give your organization peace of mind and allow you to focus on other aspects of your cyber security strategy.
Improved Incident Response: Insurance providers often offer additional resources and support for an incident response such as a breach coach,, helping your organization respond more effectively to cyber incidents.
Conclusion
Control requirement 5.1.2.4 of the CAN/DGSI 104:2021 Rev 1 2024 standard highlights the importance of considering cyber security insurance as part of your organization’s overall cyber security strategy. Remember, the goal is to have a plan in place that provides both financial protection and peace of mind.