Coalition, a cyber insurance agency for small and midsize businesses, has launched an incentive program to reward policyholders who implement multi-factor authentication (MFA, also commonly known as 2FA) on their business email accounts.
Coalition said recent reporting shows that enabling MFA can block up to 99.9% of automated cyberattacks. With this new offering, if a Coalition policyholder has MFA or 2FA enabled and required on business email—and a funds transfer fraud, security failure, or data breach incident occurs due to a business email compromise—they are eligible for a 50% reduction in the largest applicable deductible, up to $10,000.
Multi-factor authentication is a security measure that adds a layer of protection to systems by requiring an additional factor of authentication beyond a username and password. Using MFA, users must also provide a digital token or code that is provided by a secondary device in the user’s possession to gain access to their account.
According to Coalition, approximately 36% of claims reported by its policyholders occurred because of a business email compromise, ultimately resulting in a range of losses from ransomware, social engineering, and funds transfer fraud to regulatory penalties, data restoration costs, among others. Each incident resulted in an average loss of more than $160,000, a significant figure for any small or midsize business.
Coalition said each of these losses could have been avoided altogether or substantially minimized if the policyholder had MFA in place. However, a 2017 Duo study found that only 28% of people protect their accounts with MFA.
This offering is now available on all Coalition Surplus Lines policies.
Coalition combines insurance and cybersecurity tools to help businesses manage and mitigate cyber risk. Backed by Swiss Re Corporate Solutions, Lloyd’s of London, and Argo Group, Coalition provides up to $15 million of cyber and technology insurance coverage in all states.
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