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Why Every Business Needs Cyber Insurance

In today's digital age, the risk of cyberattacks is more prevalent than ever. As businesses transition from paper trails to digital footprints, the exposure to cyber threats has skyrocketed. Yet, many business owners hesitate to invest in cyber insurance due to perceived costs. Here's why it's a crucial investment:


The Digital Shift Increases Exposure

  • Businesses have moved from tangible assets like paper documents to intangible digital assets. This shift has made even the smallest businesses vulnerable to cyber risks.

  • Cyber risk is now among the top concerns for most companies, often ranking as their number one business risk. The likelihood of a cyber event is much higher than traditional risks, such as fires.


Cost-Benefit Analysis

  • While cyber insurance premiums might seem steep, they are minuscule compared to the potential costs of a cyberattack. Cyberattacks can cost businesses anywhere from thousands to millions.

  • The severity of cyber claims is on the rise. For instance, fewer victims are paying ransomware demands, leading attackers to demand higher ransoms. Additionally, business email compromise attacks surged by 147% in the latter half of 2022 for SMEs.


Proactive Protection

  • Businesses get round-the-clock protection against cyber threats. This proactive approach identifies potential threats from various sources, ensuring businesses are safeguarded.

  • External monitoring of this caliber would cost thousands annually from multiple providers. However, with some insurers such as CFC Underwriting, it's included in the policy at no extra charge.


Expert Response and Recovery

  • A robust cyber policy provides access to in-house cyber incident response teams available 24/7. These experts can quickly address incidents, contain threats, and restore networks.

  • Without such expertise, the average downtime after a ransomware attack can stretch to 2-3 weeks, even with professional assistance.


Comprehensive Coverage

  • Stand-alone cyber policies offer extensive coverage. Many small businesses lack access to top-tier security teams or threat intelligence. A good cyber policy fills this gap, covering everything from IT forensics and legal fees to cybercrime costs.

  • With comprehensive coverage, businesses can focus on recovery instead of fretting over insurance limitations.


The Bigger Picture

  • Cyberattacks are projected to cost the world a staggering $8 trillion in 2023. Despite this, less than 20% of businesses currently have a cyber insurance policy.

  • Some cyber insurers don't just offer post-attack support. They provide protection from the moment the policy is activated.


Cyber insurance isn't a luxury - it's a necessity. In the face of rising cyber threats, it's not the insurance that's expensive, but the potential cyberattacks. Investing in the right cyber insurance ensures businesses are shielded from their most significant digital exposures.




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