Downing Offers Advice to Businesses During Cybersecurity Awareness Month

Helena, Mont.- During Cybersecurity Awareness Month, it is a good time to review your systems and reassess your cybersecurity insurance. The surge of Russian, Chinese, North Korean, and non-state actors committing cyberattacks against businesses, small and large, is resulting in dramatic premium increases for cybersecurity insurance.

“Companies with insurance policies in place covering data breach or ransomware attacks should know insurance is not a replacement for robust cybersecurity policies and procedures.” Downing continues, “Implementing tighter security protocols, such as multi-factor authentication and offline system backups, will further protect against cyberattacks, mitigate damages, and may lower premiums.”

Due to rising cyberattack activity, cybersecurity insurance premiums have increased 100-300% since the summer of 2021. Cybersecurity insurance companies are tightening terms and applying more exclusions. Underwriters are increasingly selective about which companies they will cover.

“Insurers are still offering coverage, but many have lower limits, increased premiums, and often require greater self-insured retention. This leaves companies bearing more of the associated costs, including business disruption and ransomware payment,” Commissioner Downing said. “Every business should periodically assess their cybersecurity policies and procedures and adjust their coverage as appropriate.”

For questions about cybersecurity insurance, businesses should contact their insurance agent or the Office of the Commissioner of Securities and Insurance by calling 406-444-2040