Cyber security insurance for business

Do you think you’re covered?

The UK cyber insurance market continues to grow at a steady rate against a backdrop of heightened security threats.

This has partly been brought about by a global change in working practices following the pandemic and by more businesses claiming losses as a result of breaches in their cyber security. Regulatory and compliance changes – and the demands of Professional Liability insurers – will only increase the pressure on businesses to take the appropriate steps to meet increasingly stringent obligations.

As risks grow, insurers will expect businesses to be better prepared to counter cyber attacks demanding that the steps taken meet their exacting standards. There are already examples of Professional Liability claims being refused due to inadequate cyber protection, with remedial and unplanned steps inevitably costing more.

We’re seeing cyber security vendors adding insurance expertise into the mix, with a service extension that helps companies to achieve the standards expected of them by the more aggressive insurance providers. In future, the cyber defence will be more than just the responsibility of IT, but will become a pivotal foundation for business continuity and compliance.

It’s not just the big boys

As an SME, you could be operating under the false perception that it’s only big businesses that are the target of hackers.  This is because the biggest scams have the biggest public profile – like the Microsoft Exchange breach that prompted the European Banking Authority to pull its entire email system offline. 

The Public Sector isn’t immune either, with London Hackney City Council and the Irish Health Service Executive both being breached in 2021. There’s a continuing upward trend for cyber attacks in general, but hackers are re-focusing their efforts towards smaller businesses because they are, on the whole, easier targets because they lack sophisticated security infrastructures. 

SME cyber breaches are more common than you realise

Many small-medium-sized businesses feel they’re cyber resilient because they’ve got native Microsoft 365 and antivirus built-in, plus a few extra technologies to bolster their posture. As a result, a reported 1 in 10 of these businesses have suffered a cyber breach in the past year.

The majority of SMEs hold data that’s interesting to hackers and can be used in a much wider attack targeting individuals or the company themselves. This data can include sensitive customer information, employee social security numbers, credit card numbers, account numbers, driver's license numbers and health records rise in attacks.  In education and the public sector, the ramifications are far wider.

High rollers beware!

According to Forbes, some people working within smaller businesses are more at risk of being attacked than others.  Hackers target high-value accounts for take-over. CEOs and CFOs are attractive targets and twice as likely to be taken over compared to the average employee.  Once in, these cybercriminals use these accounts to gather intelligence and launch attacks within the business.

Forbes also states Executive Assistants are also a popular target as they have access to executive accounts, and calendars and can send messages on behalf of executive teams.

New Government Initiative

The Government recently published the UK National Cyber Strategy 2022-2030 and within it, there’s a small mention of insurance in Pillar 2 of the Strategy on Cyber Resilience.

Who knows what the future will hold in terms of Legislation, but in the meantime, encouraging businesses to facilitate effective cyber security is going to be high on the Government’s agenda.

Get ahead of the game

Just like any other business insurance, the more losses escalate the more insurance providers will become more demanding in the cyber insurance market,  As time goes on it’s likely there will be stricter criteria for risk selection and higher premiums. 

One thing’s for certain, these threats aren’t going away. It makes sense for insurers to continue to influence and incentivise businesses that adopt effective cyber resilience practices and offer products and services accordingly. Being ahead of the game and establishing a robust cyber resilience posture, not only protects your most valuable business assets today but will most likely cost you less in insurance premiums in the long run.

Take control

With so many different types of attacks on the threat landscape, the cost of remaining in control gets greater all the time.  Even if you’re prepared to bear the hefty cost of licensing individual technologies, and the salaries of the extra people to manage it and can hire from a diminishing pool of skilled resources, there’s no better time to consider your options.

Managed Security Services are a great way to take a staged approach toward a robust cyber security posture. What’s the harm in starting the conversation?

Request a callback
Cyber Security Cost or Cost Savings? A matter of perspective
Technology Spotlight
Related Articles
Managed Security Services Webcast: Cyber Resilience for SMEs: Taking Control
Webcast: Cyber Resilience for SMEs: Taking Control

Cyber preparedness insights from a serving police superintendent

Managed Security Services Animation: Security Posture-as-a-Service
Animation: Security Posture-as-a-Service

O365 and Antivirus can't cover it all

Managed Security Services Password danger is escalating with no ceiling in sight!
Password danger is escalating with no ceiling in sight!

Password problems will still plague every organisation

Managed Security Services Security Debt and the SME
Security Debt and the SME

Counting the cost of cyber security

Managed Security Services Your Credentials Have Been Compromised
Managed Security Services A boardroom case
Managed Security Services Start your journey
Start your journey

on The Road to Cyber Resilience

Managed Security Services Cyber Security Check-In
Cyber Security Check-In

How is 2022 going so far?

Managed Security Services IT Security as a Managed Service
IT Security as a Managed Service

Considerations for the SME

Managed Security Services Are Your Company’s Credentials on The Dark Web?
Managed Security Services Cyber security for remote workers is everyone’s job
Managed Security Services Desperately seeking…
Desperately seeking…

“Does it really work?”

Managed Security Services Are your Apps​ making you vulnerable?
Managed Security Services Cybersecurity: Advice for the SME
Cybersecurity: Advice for the SME

Guide for owner or employee

Managed Security Services If you know, you know!
If you know, you know!

Phishing By Industry Report 2021: Benchmarking Report

Managed Security Services CEO Fraud Prevention Manual
CEO Fraud Prevention Manual

What it is and how to deal with it

Creating a Human Firewall
Creating a Human Firewall

Cloud-based cybersecurity awareness training

Managed Security Services Is AI necessary -
Is AI necessary -

A CTO’s view

Cybersecurity Reality Check
Cybersecurity Reality Check

What’s actually going on in your business?

Managed Security Services Mobile Device Security for Organisations with a BYOD Policy
Managed Security Services Cyber War
Cyber War

Email communications the use of geoblocking

Cyber Security Phishing: Are you paying attention?
Phishing: Are you paying attention?

De-risking the human factor

Privileged Access Management for Dummies
Invisible PAM
Invisible PAM

Productivity and security behind the scenes

Join the discussion

Share this story

Find out more about ensuring all your cyber security bases are covered

Rate the Article

Click the link below to rate this article

Rate this article

Book a Demo

Get in touch with a specialist.

Learn more
Brochure: Managed Services to Suit Your Business Needs

Save time, money and resource with our cost-effective managed cyber security platform; keep your users safe, protect your core infrastructure, enhance your security and mitigate risk against cyber crime.

Download the Brochure
eBook: IT Security as a Managed Service

Ashok Thomas, CEO of leading managed security company, Net Utils, talks candidly about the pro’s and con’s for SME’s thinking about taking a managed security service into their business

Download the eBook

We're a community where IT security buyers can engage on their own terms.

We help you to better understand the security challenges associated with digital business and how to address them, so your company remains safe and secure.

Interested in what you see? Get in touch, and let's start a conversation Get in touch