How EDR Helps You Get Insurance Coverage

How EDR Helps You Get Insurance Coverage

Like any form of insurance, cyber insurance can be crucial in the event of an unforeseen incident. Coverage varies as do the specific requirements of each insurance provider, but most will require that certain common criteria are met. This is to mitigate risk: an insurance company is also a business, and will not insure an individual or organization that it considers an inordinately risky investment. Companies must demonstrate that they have sufficient measures in place to protect against cyber threats before they can even obtain an insurance policy, and they must maintain that security if they want the policy to hold up when it’s needed. 

Why You Need Cyber Insurance

Cyber insurance is vital for any business to stay protected in case of a data breach or other attack. Like a fire, flood, or car accident, a cybersecurity incident can cause a great deal of damage and cost a lot of money. However, cyber threats are somewhat unique in the risk they pose, as the question of a cyberattack occurring is often an issue of when, not if. Being inadequately protected in the face of a serious attack could set a company back millions of dollars – sometimes even with insurance, if the insurance company rules that security measures were not properly maintained. 

Luckily, the security and protections required by insurance companies are not just for show. While having adequate measures in place is necessary to be approved for insurance, it also significantly decreases the chances of having to file a claim. With the right combination of cyber insurance and security solutions, a business can be prepared to meet threats and fight against them without fear of losing everything in an attack, or the fallout from one. One part of this recipe, in many cases, is having an Endpoint Detection and Response (EDR) solution.

What EDR Does

An EDR solution detects potential threats and security events at the enterprise endpoint, then helps to investigate and remediate the issue. By sensing risks that may get past other solutions and allowing organizations to understand how and why an attack proceeded, EDR “fills in the gaps” to combat as much of the risk as possible. Some of the specific duties of an EDR solution are monitoring and gathering endpoint data, analyzing data for threat trends, responding to recognized threats with either elimination or containment, alerting security personnel to any threats that are found, and carrying out forensic analysis to better understand the threat and how to prevent similar attacks in the future. 

For businesses and organizations that are particularly likely to be the target of an attack, EDR is a good choice of protection. The detection part of the process includes the ability to pick up on threats, and the response part helps you to make sense of the threat and similar attacks in the future. It can prevent security incidents as well as mitigate the damage in the event of a breach, while also raising the overall security posture of an organization, potentially saving a great deal of money and other resources.

How it Helps with Cyber Insurance

The reason that many cyber insurance providers require businesses to employ an EDR solution is quite simply because EDR makes an enterprise more secure. Traditional endpoint security measures – Endpoint Protection Platforms, next-generation antivirus solutions – are not generally able to provide the level of visibility that an insurance company demands. Whether they are considering an application for coverage or a claim after an incident, insurance providers want to know that their commitment is an advantageous one, and their investment sound. Anyone hoping to secure a policy or file a claim should be prepared to demonstrate that they are doing what they can to prevent and defend against attacks. 

Because EDR takes security a few steps further than other, more traditional solutions, it reduces the risk profile of a company. It not only decreases the chances of a breach occurring, but also includes features that may lower the total cost of an attack – if it cannot be avoided. This means that cyber insurance claims are less frequent and less expensive than those of an enterprise without an EDR solution. Ultimately, it saves money and lowers risk for both the client business and the insurance company, which is what makes it a good candidate for coverage. 

In relation to all of the other valid reasons that EDR is important, the fact that it is often a requirement for cyber insurance policies is perhaps one of the most convincing arguments. There are many ways to secure your business none of which are one size fits all, so searching for the right EDR solution – and the right kinds of measures and tools to supplement it with – is up to you. Though every enterprise is unique and has its own needs, there are some general guidelines for what to look for in an EDR solution. Along with other security solutions and policies, EDR can save millions in damages by preventing attacks, containing threats to minimize damage, and securing your cyber insurance coverage.

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