Employee errors and inadequate security practices are affecting businesses’ eligibility for cyber insurance coverage

Employee errors and subpar security measures are undermining businesses’ ability to obtain comprehensive cyber insurance coverage, as per a recent report from QBE. The survey conducted by QBE discovered that a substantial proportion of employees (31%) have made mistakes that have the potential to compromise their workplace’s cybersecurity.

These errors encompassed falling prey to phishing scams (5%), unintentionally clicking on links or downloading content leading to malware infiltration (7%), losing or having work devices stolen (6% and 7%), and sharing passwords with colleagues (13%). Furthermore, the study revealed that fewer than half of the participants (46%) indicated that their workplaces offered cybersecurity training for their staff. Only 43% reported the use of multifactor authentication (MFA) to access work devices and systems, and a mere 29% claimed to have participated in phishing and cyber scam simulation exercises.

The findings underscore the necessity for companies to focus on educating their employees about the potential risks and the actions they should take to mitigate them, ultimately fortifying their cybersecurity protocols. QBE emphasized the critical role of employee education in safeguarding against cybersecurity threats. Erica Kofie, Head of Cyber Proposition for QBE Europe, emphasized the need for educational programs aimed at raising employee awareness of cybersecurity risks and providing guidance on identifying suspicious activities.

She also recommended periodic phishing simulations to pinpoint areas where additional education is necessary. Additionally, QBE highlighted the importance of ongoing vigilance, especially in the face of evolving cyber threats. Cyberattacks continually adapt and become more sophisticated, with phishing being a prime example of criminals’ increasingly sophisticated techniques. Thirteen percent of surveyed employees expressed a lack of confidence in their ability to recognize a phishing scam.

Furthermore, the majority of respondents (56%) believed that the rise of artificial intelligence (AI) would amplify cyber risks rather than mitigate them (12%). Kofie stressed the importance of businesses closely evaluating factors such as IT security, employee training, and response plans. These measures not only bolster resilience against cyber risks but also enhance the business’s risk profile, influencing the extent of coverage and premium rates offered by cyber insurers.

In conclusion, Kofie emphasized that it is vital for businesses to assess and fortify their cybersecurity measures to not only address vulnerabilities but also to ensure they can access comprehensive insurance coverage. As part of their ongoing engagement with customers, QBE encourages preparedness and the sharing of pertinent information on failed cyberattacks, effective security measures, identified vulnerabilities, and strategies to enhance security.