Cyber Insurance – Can It Protect Your SME?

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Cyber Insurance protects companies in the event their data is hacked and financial loss or distress is possible or has occurred – but the cost of the covering of these events may actually outweigh the risks that most SMEs face.

For companies with large databases of confidential information, cyber insurance is probably an essential requirement – but for cyber insurance to be worthwhile, the company needs to be able to invest in protection systems to prevent such an attack happening. For large firms this investment is likely worthwhile.

For smaller companies however, having the right risk management and procedures in place to ensure the cover operates in the event of a cyber attack could be a drain on both the resources and finances of a smaller company. The circumstances under which Underwriters will pay are quite specific, and if it transpires that no measures were put in place to reduce risk, it is unlikely that compensation will be granted – at which point, what value does the premium being paid offer?

It should also be considered that the majority of SMEs are not likely to hold large amounts of confidential data that would result in a large claim for negligence, nor any subsequent loss of reputation following an attack, but then – not all SMEs are created equal!

If you would like to find out if your company would benefit from Cyber Insurance, then get in touch with us. We will discuss exposure, risk, and the real costs of cyber attacks to help you make an informed decision.