What is the impact of a company’s cybersecurity posture on its insurance premiums?

A company’s overall cybersecurity practices, such as firewalls and encryption, can impact its insurance premiums in a positive way. By having robust cybersecurity measures in place, companies can reduce the likelihood of cyber incidents and data breaches, which may lead to lower insurance premiums. Insurance providers often offer discounts or more favorable terms to companies with strong cybersecurity practices as they are considered lower risk. Conversely, if a company lacks adequate cybersecurity measures, it may face higher insurance premiums or even struggle to obtain coverage.