Almost all modern businesses store data in the cloud, have a number of connected digital devices, use online apps, or employ other types of cyber technology to serve their clients and stay competitive in their fields. While these technologies help businesses in their operations, they’ve also made them more vulnerable to cyber crime, resulting in Cyber Insurance being essential for modern organizations.
However, understanding your cyber risk and deciphering policy jargon can be challenging tasks when shopping for Cyber Insurance. Partnering with the right Cyber Insurance broker who has proven experience can help companies maximize their investment and improve their cyber risk management strategy.
What Is a Cyber Insurance Broker?
Not all Cyber Insurance policies are created equal. Every organization has unique risks and exposures, and there is no single solution for Cyber Insurance. Cyber brokers, like the experts at ProWriters, help businesses find the right insurance coverage by guiding them through the complicated insurance market. They use their expertise and connection with top insurance carriers to help organizations find specialized lines of coverage that match their unique needs.
Here are some ways partnering with a Cyber Insurance broker can help businesses improve their risk management strategy and maximize their investment:
- Assess Risks: Most organizations need help understanding their cyber risk profile. A Cyber Insurance broker will take time to assess which parts of your organization are connected to technology and how this connection creates risks for your business. Then, after evaluating your processes and operations, a seasoned Cyber broker can recommend the best coverage to address your exposures.
- Navigate Industry Changes: The Cyber Insurance landscape is changing at a rapid pace due to growing market demand and evolving risks. More and more Cyber carriers are adding to the list of required cyber security practices for insureds.
Unlike Cyber Insurance agents who work under one insurance company, Cyber Insurance brokers have established partnerships with top carriers to ensure you get access to this information quickly. They will also use their network to match you with carriers that offer a policy that meets your needs and to negotiate policy terms for the best coverage.
- Provide Resources: A good Cyber Insurance broker will provide guidance and resources to help your company create a culture of cyber security within your organization and implement the best practices.
Why Is Cyber Insurance Important?
All organizations that collect data and use technology are at risk of cyber attacks, which can come with catastrophic costs. According to industry data, cyber attacks now cost businesses $200,000 on average, but only 14% are prepared to defend themselves. Furthermore, 60% of small companies end up going out of business within six months after experiencing a data breach.
Strong Cyber Insurance helps businesses cover the costs of cyber crime and get back on their feet. Unfortunately, some organizations fail to recognize this advantage due to the following reasons:
1. They Don’t Think They’re a Target
While the data breaches, ransomware events, and cyber crime incidents we hear about in the news often center around large corporations, small-to-midsize businesses are the more common targets. Hackers tend to focus less on target companies and more on specific vulnerabilities that have a higher success rate.
2. They Don’t Understand the Costs of a Data Breach or Other Cyber Event
Many business owners aren’t familiar with their exposure or just how devastating the aftermath of an attack can be. As the rate of cyber attacks increases, the financial consequences of these cyber threats rise as well, including:
- IT forensic costs
- Breach notification costs
- Credit monitoring costs
- Ransomware events
- Business interruption
- The cost to rebuild
- Crisis management costs
- Third-party claims related to breach of PII
- PCI fines and penalties or assessments
A security breach becomes expensive quickly.
3. They Don’t Understand What Cyber Insurance Offers
Many business owners perceive that Cyber Insurance policies aren’t worth the expense because they don’t provide much coverage. In a cyber attack, they believe that their business will still be on the hook for many of the expenses. However, today’s Cyber Insurance products are comprehensive and cover many of the costs that come with a breach. Partnering with a Cyber Insurance broker can help businesses understand their unique risks and what policies can help them strengthen their security.
Find the Right Cyber Insurance Policy by Partnering with ProWriters
The evolving cyber risk landscape poses significant threats to growing businesses. The right Cyber Insurance broker can help you find coverage that fits your specific risks. At ProWriters, our Cyber brokers have built relationships with the best insurance companies in the industry so that you can get the best coverage options. Connect with us today to learn more!