For small and medium-sized businesses (SMBs), the evolving cyber insurance landscape can be particularly difficult to navigate.
With ransomware attacks and associated costs on the rise in many organizations, there is room for cyber insurance as part of your business coverage. of the IMB 2022 Data Breach Report noted that the average cost of a breach in the United States is $9.44 million.
“Dealing with a large-scale cyber incident is not a one-person job,” said Jason Rebholz, CISO at Corvus Insurance.
According to a CNBC survey of US businesses in 2021, only 26% of small businesses reported having cyber insurance.
“With a lack of protection and cyber insurance, these small businesses are struggling to survive and are being forced to close their doors entirely after falling victim to cyberattacks. Co-founder Dor Eisner said:
In January 2023, Guards launched plans to expand its cyber insurance business unit with a particular focus on small and medium-sized businesses. The company has raised his $10 million in seed funding led by Hanaco Ventures, with participation from iAngels, GKFF Ventures, and Cyverse Capital. Guardz He was founded in 2022.
“The SMBs that Guardz serves generally lack adequate cybersecurity, but this segment suffers because cyber insurers do not cover unsecured SMBs. It’s a huge untapped market that we’re trying to do,” Eisner said.
Guardz has developed a cybersecurity and protection platform for small businesses. Many small businesses are in high-risk industries with sensitive data, such as legal, healthcare, financial services, and retail.
Another challenge facing small businesses is the cost of insurance premiums. In the UK, Marsh said prices have risen by 102% in the first quarter of 2022, largely due to ransomware.
“For small businesses, cyber insurance is typically handled by the business owner, an employee responsible for the company’s IT, or an external IT supplier (MSP). of employees, especially small businesses,” says Eisner.
He explained that their solution helps businesses with less IT proficiency who can’t afford to pay for and manage the complex and expensive platforms typically used by large enterprises.
Eisner believes that in the next five to 10 years, cyber insurance will become an industry standard, like commercial insurance.
talk information security, Mr. Rebholz provided advice on what businesses of all sizes should consider when purchasing insurance. The cyber threat landscape is vast and impacts different industries in different ways. Adjusting your insurance policy will ensure that you are adequately covered for the risks you face. “
