The misconception that cyber insurance is too expensive incredibly common and a particularly tricky one to address, especially in the challenging economic times we face. However, when looking at the cost of risk management versus the potential costs of an incident, the picture becomes clearer. Options for mitigating your risk cost less than you might imagine and could prevent your business from being stopped in its tracks.
Despite our absolute belief in the necessity of this product, we understand that no industry has been immune to the effect of the COVID-19 pandemic and inflation since. This has had a negative impact on cyber security budgets. It has been found that 51% of small and medium-sized firms had stopped paying for a number of business insurance covers, including employers’ liability, business property cover, professional indemnity and cyber. We understand that these budget related decisions are not easy to make. Now it is more important than ever to invest your insurance budget wisely. We can have a considered conversation with you about your exposures and concerns and how best to address these. If cuts need to be made we advise you on the possible impact this could make to your business as a whole.
The sad fact is 60% of SMEs fold within 6 months of a cyber incident.
The cost of cyber insurance is influenced by the increased severity of cyber claims and the innovative risk management services that come with the policy, making cyber insurance one of the best investments any business can make. There’s the business interruption loss to consider, as well as remediation and recovery expenses, legal fees, regulatory harm, and so on.
To survive, businesses have to be adaptable and dynamic and that involves a considered and ongoing assessment of the risks you face. In the current climate, we must face these threats head on. Cyber insurers are there and ready to assist but you cannot afford not to have a cyber risk management strategy in place. Despite the misconception that cyber insurance is too expensive, it’s no surprise cyber risk is a top business exposure – with cyber insurance key in mitigating this risk. More than offering cover for financial loss, cyber insurance gives you instant access to a wide range of technical specialists– experts in helping businesses quickly recover from cyber events.
For further cyber-security advice and insurance solutions, get in touch with our expert team.