How to Tackle Rising Cyber Insurance Policy Costs

Apr 20, 2022

With the world shifting heavily to digital solutions these past couple of years, it should come as no surprise that the number of cyberattacks is increasing year after year—with serious consequences for targeted businesses. According to McAfee, in 2021, 81% of global organizations experienced increased cyber threats and 79% experienced downtime in the wake of previous cyberattacks. From hacking and ransomware to phishing and employee negligence, the resulting loss, compromise, or theft of data has far-reaching negative impacts on a business, whether that’s a damaged reputation, the loss of customers, or lower revenues.

As a result, some businesses have decided to pay for cybersecurity insurance policies in order to try and help reduce the financial risks that come with doing business online. By paying a monthly or quarterly fee for an insurance policy, businesses can then transfer some of the risks to their insurers.

However, as cybersecurity insurance policies continue to increase in costs, many businesses are wondering whether paying insurance premiums is the right choice for them. This can be a stressful and difficult situation since businesses need to choose a premium that is affordable yet has a high enough liability level so they can avoid financial ruin. Keep reading as we share a simple but straightforward way for businesses to reduce or opt-out of cybersecurity insurance costs with more secure practices.

Shore Up Your Business Defenses

First, let’s discuss how different business features affect cyber insurance costs. Insurance companies generally base their rates on the revenues of the business. So, the larger the revenue, the higher the premium. In addition, the more data records or third-party information that a business stores, the higher its insurance premiums. This means that companies that store sensitive personal or financial data such as social security numbers, dates of birth, credit card information, and more typically fall into the highest tier of risk and thus pay the highest premiums for their cyber insurance.

If all this talk about picking the right cybersecurity insurance doesn’t excite you, you’re not alone. Fortunately, there’s an efficient way to shore up your defenses against cyber attacks: an effective and secure file transfer system.

Very simply, a file transfer system refers to the process in which one computer system transmits a computer file through a communication channel to another computer system. For nearly every type of business, whether it’s a financial institution, healthcare provider, or retail store, company leaders need to ensure that their exchange or delivery of data is secure, compliant, and efficient. From sharing documents internally among employees or externally with customers or partners, file transfer lies at the core of daily business operations, which is why it’s so important to have a solid system that keeps critical data private and out of the hands of hackers.

So what type of file transfer system can help you achieve this?

A “sending” technology rather than a “sharing” one is crucial for this purpose—and not to mention, creating a seamless process. With a “sharing” technology, both parties simultaneously exchange data. However, “sharing” technology requires that the end-users use a variety of things—such as a pin, password, login, application, or software—in order to join that “sharing” environment. In contrast, with file “sending” technologies, only one party needs to be on the system in order to push or pull information—all without creating friction in the user’s experience by forcing them to create a pin, password, or account.

By using a more convenient process such as a file “sending” technology, you can reduce the cost of your premium since insurance companies evaluate your business’s level of risk when quoting you. In addition, with a seamless file transfer system, employees are less likely to disregard risk or compliance requirements, which may cause them to use insecure channels such as email instead. And with employee negligence being one of the top causes of cyber insurance claims, you can better protect your business against the financial consequences of cyberattacks, lost data, fines, penalties, and public relations costs.

The Botdoc Way

Botdoc is the first-ever easy, remote, and secure file transport service that works via text messaging and email with end-to-end encryption. With Botdoc, you’ll close transactions at least 50% faster with no pins, no passwords, no logins, no accounts, no apps, and no software to download.


Let’s schedule a demo today and discuss how the secure “FedEx” of data can help you better manage your bottom line.


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