Why Every Small Business Needs Cyber Liability Insurance In 2021

April 26, 2021
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Business Insurance Insights

In 2021, with more than 60% of small businesses receiving cyber attacks each month, cyber liability insurance may be more important to the sustainability of your business than general liability.

According to a recent report from the Information Systems Audit and Control Association (ISACA), cyberattacks currently reign as the fastest-growing form of crime.

In addition to security and reputational repercussions, these attacks can often cause significant financial disruption—with global cybercrime costs estimated to reach a startling $6 trillion in 2021.

The scary part?

It’s not just huge international conglomerates and Fortune 500 companies being attacked by cybercriminals.

Here’s what small businesses need to know about cyber insurance…

Business Insurance is confusing, time-consuming, and costly.

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Small Business Cyber Insurance

It’s unfortunate, but the news only covers cyber attacks against large multinational or Fortune 500 companies, companies that a mass audience will recognize their name, like the recent SolarWinds attack. But the truth is 60% of small businesses will have a cyber attack against their business this month, 60%.

So the question I get more than anything is, who is cyber insurance for? Do I need it? It feels like an expense, and today, in 2021, in a post-COVID world, cyber insurance is as important as your general liability.

Top Small Business Cyber Liability Risks

No organizations are immune to cyberattacks.

Over half (53%) of respondents from ISACA’s report expect to experience a cyberattack within the coming year. With this in mind, review top cyber trends from the last 12 months and respond accordingly to ensure your organization remained safe and secure in 2021.

Here are some of the most common cyber concerns from 2020, as well as best practices for avoiding them:

Social engineering — Cybercriminals implement social engineering scams to manipulate their victims into sharing sensitive information. This manipulation usually occurs in the form of impersonating an individual or organization that the victim trusts, thus making the victim feel falsely comfortable with providing their information. While these scams can happen via text, phone calls, or email, the latter method (also known as phishing) is the most popular. To keep these scams from wreaking havoc on your organization, instruct staff always to verify the identity of the individual or organization they are communicating with and be wary of sharing any sensitive information over the phone or online.
Ransomware — Ransomware is a type of malicious software that cybercriminals use to compromise a device (or multiple devices) and demand a large payment before restoring the technology for the victim. Since ransomware often appears in deceptive links or attachments, encourage employees never to click on suspicious links or download attachments from unknown senders.
Software update issues — Although conducting routine software updates may seem arbitrary, it can make all the difference in protecting your organization. Failing to update your software regularly can create major cybersecurity gaps, making it easier for cybercriminals to infiltrate your systems. That being said, keep staff on a strict update schedule, and consider using a patch management system to further assist with updates.

How to Purchase Cyber Insurance

The good news is, in 2021, purchasing cyber insurance doesn’t have to be difficult.

In fact, at Rogue Risk, we make it easy. Here are three simple steps to receive up to nine cyber insurance quotes in less than two minutes:

Click here to start the quote process.
Give us a few pieces of basic information about your business.
Receive up to nine cyber insurance quotes from A-rated insurance carriers.

Once you have a feel for the pricing available to your business, one of our cyber insurance specialists will provide a breakdown of your options and help you choose the right cyber insurance policy for your business.

Purchasing cyber insurance doesn’t have to be hard.

The Rub

Small business cyber insurance covers brute force attacks on your system, people trying to get data out of your system, as well as damage any attacks do to your system or against any of your clients, partners, or vendors.

Unfortunately, these cyberattacks are no longer only the concern of big businesses and brands. Small businesses are under attack. Cybercriminals launch thousands of ransomware attacks against smaller organizations that commonly have a higher cyber vulnerability.

For all these reasons, small business cyber insurance has become as (or more) important than general liability.

At Rogue Risk, we specialize in cyber insurance, work with over 7 of the top cyber liability insurance carriers in the world, and can turn a quote around in minutes.

Get a quote for cyber liability insurance today.

If your current insurance professional has never addressed cyber liability insurance with you, I’d encourage you to reach out to us today.