Backed by years of studying cyber insurance, FifthWall Solutions presents only the facts when it comes to cyber insurance. SMBs have options, but not all cyber coverage options are equal. Below is a coverage comparison chart to let data drive decisions. A few more facts to consider:
- Only 17% of SMBs have some form of cyber insurance coverage^
- $3.31M is the average impact of a data breach on organizations with fewer than 500 employees^^
- Tech E&O does not cover your MSP for soliciting financial services. MSPs who approach any type of coverage solution for their client should enlist a third-party licensed broker.
Insurance Comparison
As cyber incidents rise, so do the number of cyber coverage options. “How do you know your client has the right type of cyber coverage? How do you know there aren’t gaps that leave you liable as the MSP,” — Will Brooks, FifthWall’s Channel Chief. “Uncovering if your clients have comprehensive cyber insurance as a starting baseline is the only way to know.”
What is comprehensive cyber insurance?
A comprehensive cyber insurance policy goes a long way to backstop financial consequences from a cyber incident and bring in the right teams to respond, investigate, and restore your client’s business. Comprehensive cyber also focuses heavily on insuring against a far wider spectrum of cybercrime than its alternatives.
How much cyber insurance does my client need?
Here’s where comprehensive comes into play. The per-record cost of a data breach reached an all-time high of $165 per PII in 2023.** This grows exponentially when you account for everyone your client’s business interacts with and the sensitive data they store on file. That cost adds up fast.
FifthWall’s recommendation: Clients should start with an aggregate limit of $1M or approximately 10% of their gross revenue, whichever is higher. Because cybercrime is a prevalent threat, cybercrime limits should be at least $250K.
If your client needs to add limits to supplement their current policy, carriers can stack excess coverage (even during the year), but only on top of comprehensive policies.
The better clients are equipped with security, the more they will have access to better cyber insurance and coverage options.
Carriers like to see improvements in security posture year over year. At FifthWall, we work with you to evaluate your client’s current coverage (if they have it) and current controls to build a roadmap to improved security. This keeps them an optimal risk to our carriers, making obtaining the right standalone policy a seamless experience.
A partnership with FifthWall Solutions means fewer insurance forms and frustration for your MSP and better cyber coverage for your clients! Get started today at fifthwallsolutions.com/msp.
*Approximations based on median 2023-24 policy details of a $12M construction firm ^AdvisorSmith, 2021 ^^*IBM and Ponemon Institute “Cost of a Data Breach 2023”*2023 NetDiligence Cyber Claims Study **IBM and Ponemon Insitute “Cost of a Data Breach 2023”
