Cybersecurity insurance becomes a barometer for company readiness

August 2, 2023
Access Tech: Cyber insurance has emerged as a determining factor for trusted providers in deciding whether to engage with a client. Are you insured?

As a company, you may think cyber security is all you can do to protect your company from attacks. However, another layer of security in the form of cybersecurity insurance protects your company even further. 

A survey of 500 small-to-medium enterprises (SMEs) reveals that only about a third of them consider cyber insurance as an essential component of their cybersecurity strategy. 91 percent of the respondents who do have cyber insurance acknowledged that their provider played a crucial role in helping them prevent potential incidents. 

How many companies are highly prepared for a cyberattack? 
There is a hefty price tag associated with facing a cybersecurity incident. When partnered with cyber insurance, the price tag can become less hefty. 

The survey finds 50 percent of companies have experienced a significant cybersecurity incident in the last 12 months — taking 3.4 weeks on average to recover. 90 percent of those that experience a significant security incident acknowledge it cost their organization a lot more than they expected. 81 percent of those respondents said they also experienced a drop in revenue in the wake of those attacks. More than a third said they would pay ransom to recover their data in the event of a ransomware attack. 

The survey finds only 55 percent of respondents report they are highly prepared for a cyberattack. 

Weigh the risk 

Companies are highly encouraged to have a cybersecurity strategy but there is still a significant percentage of companies that have yet to implement one. The issue is that those companies without cyber insurance are just waiting before they join the ever-growing list of victimized organizations. 

Cyber insurance has become something of a barometer for whether trusted partners take on a client. Providers of cyber insurance have significantly increased the level of cybersecurity qualifications that need to in place before they will insure an organization. If you’re looking for a trusted partner, they may or may not decide to do business with you depending on your cybersecurity and insurance posture. 

Companies must focus their efforts on cybersecurity seriously enough to qualify for an insurance policy. Anything short of that is now arguably little more than an invitation for disaster. Contact us at Access Tech where we can help improve your security posture.  

For more insights on this topic: