Cyber-crime is on the rise globally and SME businesses are at increasing risk of having a security breach or attack. Hackers become more sophisticated every year as technology evolves and the scale of the problem is increasing, with 39% of businesses having reported a cyber security breach in the last 12 months (2022 Cyber Security Breaches Survey).
It’s unlikely that you’ll escape a cyber-attack if you use any form of digital technology in your business, given that 60% of cyber-attacks are against small businesses. However, it’s important to protect your business from potential attack and make sure you’ve got the correct level of cyber insurance protection. This blog will cover the main cyber threats for small businesses, the basics of cyber insurance and the key cyber security insurance considerations a small to medium sized business should take.
What is cyber insurance?
Also known as cyber liability insurance or cyber security insurance, cyber insurance will protect your business against the financial loss as a result of cyber-crime, data breach and system interruption.
A good policy will provide access to technical resources too, such as IT security experts, forensic investigators, lawyers and crisis communication specialists who will all help to get you back online as quickly as possible.
What if I have a cyber-attack and don’t have insurance?
Businesses without a cyber insurance policy will face longer downtime because an insurance provider would have the experts on hand to help you get back up and running (they would also help to protect you against future risks). If you were subject to ransomware, you’d need to negotiate with the hackers yourselves, as you wouldn’t get access to a skilled negotiator.
You would also be liable for all the costs associated with a data breach, such as reinstating your data, legal costs and business interruption costs.
How much does cyber insurance cost?
Cyber insurance for a small and medium-sized enterprise would vary depending on the size of the business, the industry’s vulnerability to cyber-attacks, the cyber security measures they have in place already and their history of breaches.
As with all insurance premiums, it’s a matter of assessing the risk, but protecting your business with robust cyber-security measures will minimise your risk and lower the cost of cyber insurance.
Is cyber-insurance worth it for my business?
It’s down to you really. A report by Hiscox said that Cyber security incidents cost the average small business £25,700 last year in direct costs (for example, ransoms paid and hardware replaced), but there is always the loss of business – without the support of an expert team to get your systems back up and running, you will lose revenue and won’t be able to deliver a good service to your customers.
Where can I learn more about cyber-attacks?
If you’re a small to medium sized business and would like to find some practical help around cyber security measures your business can take today, check out this guide from the National Cyber Security Centre.
How can I protect my business with cyber insurance?
We offer bespoke cyber insurance packages for professional services and creative businesses of all shapes and sizes. Whether you’re a freelance consultant or a large firm with a growing team, Eggar Forrester will design the right cyber insurance package for you.
Our cyber-security insurance services are led by Account Director, Jamie Underwood. Jamie has provided cyber-security insurance solutions for over ten years and has an excellent relationship with our underwriters, who are market leaders in cyber security insurance.
For more information about Eggar Forrester’s cyber insurance solutions, visit Cyber Insurance in London | Protect Your Business with Eggar Forrester Insurance