To better understand the gap between cyber exposure and opting for a cyber insurance and risk management solution, we need an honest look at today’s troubling realities of cyberattacks on businesses of every size.
Nearly 90% of business respondents surveyed for The Hanover’s Cyber Risk Report reported experiencing a cyberattack during the past year and recognized a cyberattack could have a disastrous impact on their businesses. Business respondents also said that decisions to purchase cyber insurance were heavily influenced by media coverage and prior attack experience.
CrowdStrike found that intrusions threatening organizations’ cybersecurity across the globe grew 400 percent in 2019 and 2020 combined. Nearly four out of five of those compromises in 2020 stemmed from cybercriminals. Overall, hacking efforts by both cybercriminals and state-sponsored groups grew in 2020 and are unlikely to let up in 2021.
So Why Do Gaps Remain In Cyber Insurance?
At FifthWall Solutions, we surveyed agents to learn about the objections they hear from their clients and business owners. When asked why they are not accepting baseline cyber insurance policies, some of the answers have included:
- We can’t afford to pay the premium of a comprehensive policy.
- We have IT, so we don’t need this coverage.
- We simply don’t need cyber coverage — who is going to want to ‘breach’ us? We’re a small company.
The Good News
- When it comes to cyber insurance coverage, you can take a progressive approach through recommending FifthWall to your risk advisor–with our program, you can start with a baseline policy that binds instantly with no application, and move into a comprehensive policy as your business demands it.
- FifthWall also offers risk management solutions, which are critical to improving the risk posture of any business. From educating employees on phishing emails to 24/7 end-point monitoring of devices and servers, we will work with you to strengthen your cybersecurity posture.
The Bad News
- Many businesses believe that cyber insurance alone is all they need to protect their business when, in fact, their business may need certain levels of cybersecurity and compliance before purchasing a plan.
- For many the overall cyber insurance world may seem confusing as business owners are inundated with spam-like emails. Which policy is the right solution? Do I need coverage?
- While businesses are insured against traditional cyber risks, such as breaches of personal information, most remain vulnerable to emerging threats, such as malware and ransomware, revealing a potential gap in their insurance coverage.
2021 is only taking up where 2020 left off when it comes to cybercrimes. Cybercrime escalated due to the tremendous shift to remote work. Cybercriminals became more talented and developed more sophisticated methods.
The difference is a comprehensive cyber insurance solution. It all comes down to a solution: a low-cost, no underwriting application product; an expedited renewal process; and an unwavering commitment to excellence by our people.
Contact FifthWall Solutions today. We are standing by to make all the difference.