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Why MFA & Professional Liability Insurance (Cyber Insurance) Go Hand-In-Hand

January 12, 2021Ilana Belfer

The global cyber insurance market is expected to grow by 21% in 2021 making it a $9.5 billion industry, according to Finaria data.

Why? Because businesses and organizations are learning just how frequent and how crippling cyber attacks can be. Not only do they expose sensitive information — they can also cause issues and losses that take huge amounts of time, money and labour to resolve and recover.

That’s why it makes sense that many professionals are opting for cyber risk coverage as part of their professional liability insurance portfolios. This is especially true for service-providing companies, which need added protection from client lawsuits.

Multi-factor authentication (MFA) and cyber insurance go hand-in-hand for a couple of reasons.

  1. MFA could reduce the cost of your insurance. In the same way that putting winter tires on your car, or keeping a good driving record can lead to cheaper auto insurance, you can save on professional liability insurance by bolstering cyber safety with MFA.
  2. In some regions and industries, you cannot renew your insurance without having two-factor or multi-factor authentication in place.

Your boat insurer expects you to wear a life jacket. Your auto insurer expects you to wear a seatbelt. Your home insurer expects you to lock your doors.

Not taking these precautions can lead to your claim being denied, or a reduced pay out.

It’s no different with cyber insurance. MFA is the best way to ensure all the conditions of your policy are met, as well as to ensure you’re getting the lowest possible rate for it.

MFA is your lifejacket, seatbelt, and your lock.

If you’re a managed service provider (MSP), then it’s up to you to ensure your clients know this information so you can be the best possible advocate and advisor — beyond the bits and bytes.

Recently, we have been working with many MSPs who are looking for better ways to protect their customers’ networks. If you are an MSP consider the following:

  • Perform a regular security audit for your clients and provide a safety dashboard
  • Recommend MFA to your clients to help reduce their insurance costs
  • Engage your clients often to make sure your network and security is meeting their growing needs

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