Who Thinks Cyber Insurance Is Necessary?

All right, here we go again with one of our favorite subjects: commercial liability insurance, specifically cyber liability insurance. This might seem like a dull topic, but the surge in cases and attacks makes it crucial. Recent research highlights a global increase in ransomware attacks, especially in the U.S., affecting numerous small businesses. Even as an individual or a high-net-worth family, you’re not immune.

Financial investments signal continued threats.
The escalating rates of attacks are alarming, as evident in the substantial investments made by companies like Resilience, a major player in cyber liability insurance. Their $100 million investment underscores the belief that these attacks will persist. It’s clear that cyber liability is not a passing trend; rather, it’s becoming a prevalent risk for companies.

Changing Insurance Landscape and Policyholder Dissatisfaction
Amidst this trend, dissatisfaction with current coverage is prevalent among policyholders. More than a third are considering switching insurance carriers. This dissatisfaction, coupled with increased investment in the industry, creates a ripe environment for business development for insurance agencies.

Unfamiliarity with Cyber Liability Insurance
Despite the escalating risks, many insurance agencies, particularly older ones, aren’t well-versed in cyber liability insurance. It’s a relatively new product, and several companies don’t even offer coverage for it. Shockingly, most companies might have experienced a cyber attack without their knowledge, as hackers often remain undetected on networks for extended periods before striking.

Addressing Threats and Business Practices
Considering the probable risk to your company is essential to your everyday business practices. Understanding the gaps in coverage, evaluating the familiarity of your insurance agency with cyber liability, and acknowledging the stealthy nature of cyber attacks are critical steps in preparing for and addressing this evolving threat.

Feel free to share your thoughts if you’re a commercial enterprise with insurance. Are you content with your current coverage, and is cyber liability a significant consideration for your business?

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