With cyber crimes on the rise, businesses need to think beyond their cybersecurity software. Cyber insurance can be the extra step needed to keep small businesses protected in the event of an attack. This article will take a look at some of the main reasons businesses need to take a closer look at cyber insurance in today’s digital landscape.

1. Small Businesses are a Prime Target

Cybercriminals find small and medium-sized businesses (SMBs) very appealing targets. Studies and reports have shown that cyberattacks aimed at small businesses are on the rise in recent years. Despite this, only a fraction of small businesses report having cyber insurance. According to one report, 83% of respondents did not have cyber insurance.

Many believe they are immune to cyber threats, believing that attackers primarily target larger fish. Another reason is that as insurance companies become more risk-averse, cyber insurance is becoming harder to obtain.

Threat actors will continue to target SMBs and even large corporations in new ways. When evaluating your options for cybersecurity services, be sure to include cyber insurance in your list of investments.

2. The Majority of Small Businesses Lack Adequate Security

According to Security Magazine, in the past year, phishing has increased by 600% compared to February 2020, and 67% of businesses have experienced an IoT security incident. The COVID-19 pandemic also set new records in terms of cybersecurity attacks, especially given the widespread remote work structure necessitated by the shutdowns. Once much of the corporate world shifted to a work-from-home model in 2020, cybercriminals saw an opening to exploit those working remotely. Using stealth attacks and social engineering, threat actors exploited the pandemic to trick victims. The ruses that cybercriminals used to exploit small to medium businesses are likely to persist as cybercriminals find new ways to exploit them. Investing in cyber insurance transfers residual risk and provides companies with extra protection.

3. Many SMBs Underestimate the Risk

Many SMBs don’t fully understand cyber insurance. Potential losses from common cyber threats include:

  • Cyber Extortion
  • Social Engineering
  • Business Interruption
  • Virus Transmission
  • Liability Implications

Cyber insurance can help mitigate some of the costs associated with a data breach or other incident. Consult a cybersecurity service provider who understands your risk factors and the type of cyber insurance you need.

4. You Might Lose Your Business If You Suffer a Cyberattack

There are significant risks associated with not obtaining coverage. Phishing and ransomware are on the rise at an exponential rate, so it's not a question of "if" but "when" your business suffers a cyberattack. Would your company be able to absorb regulatory and government fines, forensics, investigation expenses, and all of the other costs? There is a good chance that the amount of money required would be devastating. A cyber insurance policy could protect your company from extensive costs.

Are You Looking for Cyber Insurance?

Trava offers coverage limits ranging from $100,000 to $10 million. Our team can assist you in finding the right policy and amount of coverage for your needs. With Trava's cyber quoting tool, you can get free quotes from up to eight different carriers in just a few minutes. A licensed agent can assist you in getting a cyber insurance quote online.

Contact Trava's licensed cyber insurance brokers for a free consultation if you'd like to review your current cyber insurance policy. Contact Trava today.