Cyber Insurance has become a cornerstone of modern risk management, offering financial protection and expert services to mitigate the impact of cyber incidents like ransomware attacks, data breaches, and deceptive fund theft for small and medium-sized businesses (SMBs). But how do you ensure you’re getting the best coverage and pricing? The answer lies in working with an experienced agent who has expertise and access to multiple leading underwriters.
Why Cyber Insurance is Essential for All Businesses
Cyber Insurance provides critical support for businesses facing digital threats, and is particularly important for SMBs. Coverage typically responds to ransomware attacks, data breaches, and fraudulent funds transfer (FFT) attacks, and includes:
- First-party costs, such as system restoration, business interruption, ransom payments, and customer notification.
- Third-party liabilities, including legal defense, settlements, and regulatory fines.
In today’s landscape of evolving threats—from ransomware to supply chain vulnerabilities – Cyber Insurance is no longer optional for businesses that rely on technology.
Why Small and Medium-Sized Businesses Need Cyber Insurance
Small and medium-sized businesses (SMBs) are particularly vulnerable to cyber threats. Here’s why Cyber Insurance is vital for them:
Limited Resources: SMBs typically have fewer resources to invest in cybersecurity measures, making them more reliant on Cyber Insurance as part of their risk management strategy. And many leading Cyber Insurance underwriters provide cyber security assistance as well.
Targeted Attacks: Nearly 50% of cyberattacks target SMBs, as they often lack the robust cybersecurity infrastructure of larger organizations. Cybercriminals view SMBs as “low-hanging fruit” due to their limited security budgets and resources.
Financial Impact: SMBs are particularly vulnerable to ransomware and FFT attacks. The average cost of a cyber incident for SMBs can be devastating, with costs of more than $1.0 million, potentially leading to bankruptcy or closure, making Cyber Insurance a critical safety net.
Contract Requirements: Cyber Insurance is often required by trading partners such as clients, vendors and contractors, in their contracting process. Larger organizations, in particular, will add Cyber Insurance to their listed insurance requirements in their standard contracts.
Regulatory Compliance: Industries handling sensitive data, such as healthcare and finance, face strict regulations.
How to Get the Best Pricing and Coverage
Securing the right Cyber Insurance policy requires more than just comparing quotes. Here is how working with an expert agent can help:
Competitive Pricing Through Risk Mitigation – We can guide you in implementing security controls that reduce your risk—and your premiums.
Access to Multiple Leading Insurers – eSpecialty has access to and strong relationships with leading Cyber Insurance markets and can provide multiple proposals for you. This ensures you have options tailored to your business’s unique risk profile, rather than being limited to a single provider’s offerings.
Expertise in Cyber Insurance Underwriting and Risk Assessment – We review your cybersecurity posture and help you identify gaps that could affect your coverage or premiums.
Customized Policies – A one-size-fits-all approach doesn’t work for Cyber Insurance. We can tailor policies to your specific needs, whether it’s coverage for ransomware payments or third-party vendor risks.
Why Work With eSpecialty Insurance?
We understand the complexities of the Cyber Insurance market. Our streamlined process provides multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price for your needs. We simplify the process by:
- Using digital connections to underwriters to speed the process.
- Providing multiple proposals from leading underwriters.
- Helping you navigate the complexities of policy and underwriter selection.
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. We focus on E&O, Cyber, D&O, and EPL insurance. Try our online Cyber Insurance Quoting Portal. We look forward to working with you.