Incorporating Cyber Liability Insurance with Cyber Insurance
Intro
When it comes to running a small-medium business (SMB), you face many physical risks including property damages, injuries, as well as running into risks that come from using technology. Technology risks can include anything from data breaches to hacking. To protect yourself and your company against those risks, many businesses add cyber insurance to their business insurance policies. Cyber insurance can offer broad coverages to help protect businesses from various technology-related risks.
What is Cyber Liability Insurance?
Cyber liability insurance is an insurance policy that provides businesses with a combination of coverage options to help protect the company in the event of any data breaches or other ransomware attacks. It's not a question of if your organization will suffer a breach, but when. There are worrisome trends in cybersecurity: attacks are more sophisticated, ransoms are rising, and uncertainty is growing. But while companies might look to cyber insurance to protect themselves from these growing risks, there’s another problem: There might just not be enough money in the still emerging sector to cover their needs. So what can companies do?
As it stands today, 83% of the SMB market is not using cyber liability insurance, which hints at the fact that many companies are not aware it actually exists, or they do not know where to start. On top of this, many companies who do have cyber liability insurance will not get full coverage in the event of an attack. This is because of certain policies or regulations that prevent full payouts from occurring. For this reason, it is extremely crucial for small and large businesses to know what their options are, and invest in the best fit of cyber liability insurance for their company. At Conectrix, we help business owners and IT managers navigate decisions like this.
Who is the Main Target?
Although many people may think it is only large corporations that would be targeted by malware, the truth is that SMB’s are the number one target for all phishing and malware related events. An event like this will more times than not result in that company closing down for good. As an outcome of such a crippling event, SMB’s are becoming more aware of the need to procure both cybersecurity protection and cyber liability insurance.
Benefits for Merging Cyber Security with Liability Insurance:
The merging of cybersecurity with cyber liability insurance is a trend that experts expect to see more of as we move forward in the hybrid workforce environment . Since the workforce is stretched thin with employees working remotely, at office, on the road, etc., this means that securing just the network alone is not sufficient. Every endpoint (user device) needs to be securely managed and monitored. In the event where a data breach does occur, this is when having cyber liability insurance as a last line of defense will be extremely valuable. A good liability insurance platform will cover and reimburse costs from any breach that includes ransomware, business email compromise, compliance failure, business income protection, and cyber liability protection. A key vendor in the Conectrix portfolio that performs very well in this space is Transmosis. Their security product is called Transmosis One which provides the perfect blend of 24/7 security protection plus cyber liability insurance at an affordable monthly rate to accommodate for the SMB market.
At Conectrix, we are always doing our research on the latest technology trends so that we can provide actionable information to our customers. With security concerns rising, we have been making sure to find the right cyber security solutions to best fit our customer’s needs. Transmosis is just one example of the many great vendors we represent. Please contact us below so we can help your company do a deeper dive into this topic.
References:
● https://smallbiztrends.com/2020/09/covid-business-cyber-security.html
● https://www.fundera.com/blog/cyber-liability-insurance
● https://woodruffsawyer.com/cyber-liability/cyber-101-liability-insurance-2021/