Electronic commerce is the lifeblood for most companies, and therefore cyber attacks are not simply a nuisance—but potentially devastating. Ransomware attacks, phishing plots, and data theft are on the increase, and so is the dollar bill. Cyber insurance is no longer an indulgence to carry; it is now a necessity safety net for small, medium, and large business, sector by sector.
Increased Cyber Attacks
Cyberattacks not only are on the rise but also larger and more complex. Ransomware attacks rose to double in 2023, and cybercrime losses globally will hit $10.5 trillion in 2025, recent statistics report. Small and medium-sized enterprises (SMBs) are particularly vulnerable since they cannot always afford to offset their losses.
What is Covered by Cyber Insurance?
With cyber insurance generally comprising liability, property damage, and other specialized insurance policies, cyber insurance usually encompasses:
- Data Breach Response Fees: Forensic analysis, counsel, and customer notification.
- Commercial Disruption: Reimbursement for lost business time.
- Cyber Extortion: Payment of ransom and negotiation support.
- Reputation Restoration: Crisis advisory and PR support.
- Legal Fees and Regulatory Fines: As a result of default in the safekeeping of confidential information.
Real-Life Case: Marks & Spencer
In a single prominent case, UK retailer Marks & Spencer was hacked and its online business brought offline for a couple of weeks. Fortunately, the firm had access to up to £100 million of cyber cover in the form of business loss and third-party liability claim. The profile case reminded us all about the value of good cyber cover even more so.
Trustworthy Cyber Insurance Providers and Pricing
Here are three of the leading cyber insurance providers and their estimated monthly premiums for small- to medium-sized enterprises:
1. Hiscox CyberClear
- Coverage Highlights: Data breach response, business interruption, cyber extortion, third-party liability.
- Estimated Monthly Cost: $40 – $100/month depending on business size and risk profile.
- Website: hiscox.com
2. Chubb Cyber Enterprise Risk Management
- Coverage Highlights: Extensive first- and third-party coverage, incident response, defense against regulation.
- Estimated Monthly Cost: $75 – $150/month.
- Website: chubb.com
3. Travelers CyberRisk
- Coverage Topicals: Forensics, breach reporting, media liability, data restoration.
- Estimated Monthly Cost: $50 – $120/month.
- Website: travelers.com
Price Note: Rates differ by industry, employees’ size, revenues, data sensitivity, and current cybersecurity practices.
Finding the Ideal Policy
When selecting policies, take into account:
- Coverage Scope: Is it sufficient to your data and risk exposure.
- Policy Limits & Sublimits: Are they high enough to cover worst-case scenarios?
- Response Team Access: Does the insurer provide expert help immediately?
- Claims Process: Is it timely and efficient?
Cyber insurance is a smart investment in an era where data breaches are no longer a matter of if, but when. Having the right selection of an elite insurer to align with and coverage appropriate to your risk profile, your business can approach cyber threats with confidence, knowing there’s a plan—and monetary support—to fall back on.
