The demand for cyber insurance is currently on the rise. A perfect case example is a recent report from Canada. Most small and medium businesses are increasing their need for cyber protection. This is coming at a time when cybersecurity and other cyber threats are on the rise.
Consequently, these businesses are looking for cybersecurity insurance to protect their businesses. According to reports from market overserves, it is common for SME owners to ignore the worry about cybercrime. After all, why would the attackers bother with such entities instead of going for the heavyweight like Yahoo?
Specialists’ View On the Rising Need for Cyber Insurance.
Danish Yusuf, CEO of Toronto’s Zensurnce, had his opinion to put across. For him, the need for cyber insurance has indeed risen due to increased cybercrime. Also, most SME owners are opting to go this route for compliance reasons. But in reality, the whole idea to fully insure the SMEs will take an extra two years to stabilize.
Yusuf said that often, the breaches involving the bigger organizations hit the headlines. On the other hand, the many smaller attacks don’t make news.
It is true the attackers have been friends with the bigger organizations compared to the smaller ones. But they are now applying an equal-opportunity approach. This is the new trend, especially now when the heavyweights are investing more in cybersecurity. Yusuf noted that people tend to ignore cases of a $10,000 loss. Yet, the accumulation of such smaller amounts on several SMEs makes a significant difference. Meaning every breach or threat is worth cyber insurance.
The Way Forward for Small Businesses’ Cyber Insurance
IBM Security’s 2020 report claimed 51% of organizations with cyber insurance recovered their losses. They used the claims as costs of legal services and third-party consultations. The suits also covered the victim’s restitution in several instances.
Yusuf also noted the need for policies suitable for the smaller companies. And that is where cyber insurance will make the biggest difference. So, he called for the SMEs to leverage insurance to protect themselves further. He called for the need to simplify policies to secure businesses from online crooks. Ho also echoed the sentiments with simpler agreements needed to assist SMEs.
Ho said owners should assess themselves to determine why they are likely to be targeted. They should check their email security to ensure the ultimate protection. While at it, it is an excellent idea to educate employees on how to spot cybercriminals. Another essential thing to look at is the issue of double verifications for logins. He also cautioned companies to be aware of the vast risks new technologies expose them to.
Yusuf emphasized that point-of-sale systems and data ransom are the common areas of interest. So, when seeking insurance, owners should reveal all the information to the brokers. With that, they put the providers on the hook to offer the best coverage.
Cases of cyberattacks are on the rise. Small or big, every entity is at risk, and the need for protection can never be overstated. As such, SME owners should seek cyber insurance before they fall victim to costly attacks.