Cyber Insurance for Small Businesses
One of the biggest myths surrounding Cyber Insurance is that belief that cyber-attacks only happen to large businesses. The truth is 58% of cyber victims are categorised as small businesses.[i] Cyber criminals will target any company they see as vulnerable, no matter the size. Small to mid-size organizations are typically easier to target for cyber criminals as they tend not to have robust cyber security.
Top 3 reasons to have cyber insurance
1.Incident Response Services
Responding to a cyber incident requires a range of specialists – from IT forensics firms to specialist PR agencies – that help deal with both the immediate aftermath as well as the longer term consequences of a cyber event. Small and medium sized businesses, in particular, are facing an uphill battle; not only are they increasingly being targeted by cybercriminals but they are also unlikely to have the range of required incident response specialists in-house. The good news is that cyber insurance can provide easy access to these services, helping companies more easily negotiate the changing face of crime.
2.Technology systems are critical to operating your day-to-day business but their downtime is not covered by standard business interruption insurance
Almost all businesses rely on computer systems and other technology to conduct their core operations, from electronic point of sales software to back office work flow management systems. In the event that these systems are brought down, a traditional business interruption policy would likely not respond. Cyber insurance can provide coverage for loss of income and extra expense associated with a cyber event.
3. Not all Cyber Insurance is created equal!
Cybercrime is the fastest growing crime in the world but standard property or crime insurance policies can be restrictive in the cover they offer - Even if your policy has some coverage for cyber risks, coverages may be limited. Some cyber breeches, such as Social Engineering (phishing) and Funds Transfer Fraud, are often excluded in basic cyber coverage.
[i] 2018 Verizon Data Breach Investigations report