Our reliance on technology has exposed SMEs to the growing danger of cybercrime. In fact, if your business has any of the following systems, you could be at risk of a cyber attack:
- A website
- An online retail outlet or e-commerce store
- POS systems
- Banking or accountancy platform
- A Customer Relationship Management (CRM) system
SMEs that use email, social media, telephony over VOIP, online work boards or job request platforms are also vulnerable to attacks by cybercriminals.
A cyber insurance policy is critical for your business to enable you to get back up and running after an attack and help you avoid fines, legal fees and claims made against you.
Here at Stanmore Insurance, our experts can help to protect your SME from the dangers of cybercrime.
What is cyber insurance for SMEs?
Cyber insurance for SMEs (Small and Medium-sized Enterprises) is a form of Insurance coverage that protects businesses from the financial liabilities and losses associated with data breaches and cyber incidents.
What does cyber insurance cover?
Here are some key features and components offered by cyber insurance for SMEs:
Data breach coverage
Data breach coverage protects your business against the costs of investigation, notification, potential legal fees and credit monitoring services for those individuals affected by the breach.
Cyber extortion coverage
This coverage provides assistance if your business is targeted by cyber extortion threats or ransomware, including ransom payments or the costs your business incurs to resolve the situation.
Business interruption coverage
If a cyber incident disrupts your normal business operations, this coverage helps compensate for additional expenses incurred and lost income while you recover from the incident.
Cyber liability coverage
If your business faces a lawsuit following a cyber attack, this coverage helps with legal defence costs and any judgments or settlements that might arise.
Privacy liability coverage
This insurance component protects SMEs from any claims related to the mishandling of employee or customer data, such as unauthorised disclosure of personal information.
Forensic investigation coverage
If cybercriminals attack your business, this coverage can help with the costs associated with investigating and determining what caused the breach and its extent.
Cyber incident response support
Some cyber insurance policies for SMEs offer access to resources and experts that can help your business respond effectively to a cyber incident. That includes public relations specialists to manage communication and reputation damage and IT professionals to get you safely back online.
Cyber insurance coverage can vary widely between different insurance providers, so before you choose a policy, speak to our professional, experienced advisors for guidance.
Do SMEs need insurance for cyber security?
At Stanmore Insurance Brokers, we strongly recommend SMEs take out cyber insurance to protect them from financial liabilities and losses that could result from a data breach or cyberattack.
The following are very good reasons why all Small and Medium-sized Enterprises should consider taking out cyber insurance:
Increasing cyber threats
Cyber attacks are on the increase and are becoming more sophisticated, affecting businesses of all sizes.
Unfortunately, SMEs often lack the expertise and resources to defend themselves effectively against cyber threats.
Even relatively minor cyber incidents can cause significant financial losses, including the costs associated with investigating the breach, notifying all the affected, potential regulatory fines and expenses.
Cyber insurance helps cover these costs and mitigate any financial strain on your business caused by an attack.
Cyber incidents and data breaches can seriously damage a company’s reputation and impact customer trust.
Cyber insurance can cover public relations expenses and help mitigate the fallout from a serious cyber incident.
If a cyber attack or hacking incident affects your clients, suppliers or partners, your business could face lawsuits and legal claims. Cyber insurance can provide coverage for third-party liability claims resulting from cybercriminal activity.
Depending on the industry you operate in and your location, your SME could be subject to various privacy regulations and data protection laws. Cyber insurance can help meet compliance requirements by covering regulatory penalties and fines.
Incident response support
Most cyber insurance policies provide access to cyber security experts and incident response teams who can help your business contain and mitigate the effects of a cyber incident quickly and with minimal damage to your operation.
It’s crucial to note that not all cyber insurance policies provide the same level of coverage, and what you get can vary significantly between providers. Therefore, you should talk to a specialist for expert advice and guidance.
Do cybercriminals target SMEs?
Cybercriminals target any size of business, including SMEs. In fact, small businesses are typically seen as attractive targets because they usually have fewer resources and less sophisticated cyber security measures in place compared with larger organisations, making them more vulnerable and easier to breach.
There are several reasons why cybercriminals target SMEs:
Weaker security measures – Small businesses might not have the expertise or sufficient budget to put in place robust security measures, leaving them more vulnerable to cyberattacks.
Valuable data – SMEs might not hold the same volume of data as larger corporations, but they still hold valuable information, including customer financial records, personal data and intellectual property, which can all be highly valuable to cybercriminals.
Supply chain attacks – SMEs are often targeted by cybercriminals looking to gain access to larger corporations through their supply chain, effectively using smaller businesses as a stepping stone to get to more significant targets.
Lack of cyber security awareness – Employees working in SMEs often have very limited cyber security, leaving them more susceptible to phishing attempts and social engineering attacks.
Ransomware targets – Cybercriminals increasingly use ransomware attacks, and SMEs can be lucrative targets as they are more likely to pay a ransom to regain access to their systems and critical data.
Low-risk perception – SMEs often assume they are not significant enough to attract cyber criminals’ attention, leading to cybersecurity and staff education complacency.
How much does cybersecurity cost for SMEs?
The cost of cybersecurity for SMEs varies considerably depending on several factors, such as the size of your company, your industry, the complexity of your IT structure and what cybersecurity measures you have in place.
Cyber Liability Insurance Brokers
Every cyber insurance policy has specific limits, exclusions and conditions, so it’s essential to take expert advice to ensure your policy fits your business needs.
Stanmore Insurance Brokers has an in-depth knowledge of all aspects of the insurance sector, including cyber insurance for SMEs. We have excellent relationships with a wide range of insurance providers, so once we know your business needs, we will help to choose the perfect cyber insurance policy for your needs.
We only quote you the insurance coverage your SME needs and always work within your budget. In addition, we provide you with a dedicated account handler who will get to know you and your SME on a one-to-one basis.To discuss your cyber insurance requirements in detail, speak to our team for a free, no-obligation quote.