3 Reasons Cybersecurity Firms Should Offer Cyber Insurance
Cyber threats are on the rise, and businesses of all sizes and industries are at risk of significant financial losses and reputational damage in the event of a cyber attack. While SMBs are regularly targeted by cybercriminals, however, it can be difficult for them to secure cyber insurance coverage that meets their needs.
For cybersecurity firms that serve SMBs, this is a great opportunity to expand your business by offering cyber insurance. In this blog post, we break down 3 compelling reasons why cybersecurity firms should offer cyber insurance to their clients.
Reason #1: Your customers need cyber insurance
Cybercrime is rising across the board. In 2021 the FBI's Internet Crime Complaint Center received 845,000+ complaints, with total losses that exceeded $6.9 billion. 2022 had the second-highest number of data compromises in the U.S. in a single year, and the total cost of cybercrime is predicted to hit $8 trillion by the end of 2023 (then grow to $10.5 trillion by 2025).
As frequency has grown, so has the cost to individual businesses. The average cost of a data breach for businesses in the United States reached a staggering $9.44 million in 2022. These kinds of unexpected costs would be taxing for even a large, highly profitable enterprise, but they can be devastating for small to medium businesses. Some never recover.
Your customers need a way to safeguard their operations from the harmful consequences of a cyber incident, and cyber insurance can help.
Cyber insurance protects individuals and businesses from digital risks such as data breaches, phishing attacks, and other types of cybercrime. It usually provides financial coverage for expenses related to recovering from a cyber attack, such as legal fees, data recovery, customer notifications, and reputation management. It offers a safety net that allows your customers to mitigate the financial burden and operational disruptions caused by cyber incidents and provide some relief while they recover and rebuild.
With the increasing frequency and complexity of cyber threats, cyber insurance has become an essential component of any comprehensive risk management strategy for all businesses. This creates an opportunity for you to offer your customers a solution.