July 15, 2022

Cyber Insurance Facts & Why Cyber Insurance Is Important

Around 30,000 websites are hacked daily. And that's not all – hackers are becoming bolder.

A survey of 1,263 companies found that 80 percent of victims who submitted a ransom payment experienced another attack soon after. Not to mention, of 46 percent who got access to their data, most of it was corrupted.

Even though the reality of cyber attacks is present for large and small businesses, smaller companies are less likely to have adequate strategies to protect against, detect early, and recover from such attacks.

In this blog, we'll dive into 4 compelling facts brokers can use to sell cyber insurance to their clients.

Fact #1 - Cyber Insurance Protects a Business's Reputation

Paint a picture for your client and ask them what they would do in a worst-case scenario where their data, including credit card details, and sensitive information about their customers, is leaked. The hackers are holding it for ransom.

For example, after its 2017 breach, Equifax is still paying to repair its reputation in the media and with consumers. Over the last five years, good cyber insurance has likely helped them to weather the storm.

Building trust with your customer base is not easy for any business. It takes time and consistency. In the case of a data breach, companies will have difficulty recovering from the costly attack, and the valuable trust they've built with their customers will be a risk.

Fact #2 - Cyber Insurance Protects Businesses From Direct or Indirect Financial Loss

Cyber attacks can cause a variety of financial losses for companies. Indirect losses can include reputation damage and loss of customer trust. Direct financial losses can occur when hackers gain access to a company's financial systems and either steal money directly or cause damage that results in financial losses.

These things can lead to a decline in sales and revenue and an increase in the cost of doing business. Cyber insurance protects businesses from the financial fallout of a cyberattack, covering expenses such as data recovery, business interruption, public relations expenses, and legal fees.

Fact #3 - Cyber Insurance Helps Businesses Get Back on Their Feet Faster

In the past, businesses that fell victim to cybercrime often had to bear the costs of recovery themselves. These costs could include hiring a cyber security firm to help clean up the aftermath of an attack and the cost of lost business due to downtime.

With cyber insurance, businesses can get back on their feet faster after an attack. The insurance can cover the cost of hiring a cyber security firm and the cost of lost business due to downtime.

Fact #4 - Cyber Attacks Are on the Rise

As an insurance broker, you know that the number of cyberattacks is rising, as is the cost of damages. Last year many cyber attacks made headlines, from the NBA to Colonial Pipeline to governments and healthcare organizations. Attackers are waiting to exploit any weakness, and the risk of potential damage is significant, whether a large or small business.

When selling insurance policies, you must educate your clients on the steps they can take to protect themselves to reduce their risk of being attacked, including investing in security technologies, implementing security policies and procedures, and educating employees about cyber security.

Getting The Best Coverage for your Clients

Now that you've laid out all the stats and your client understands why digital protection is an investment worth making, how do you sell cyber insurance to them? And, where do you find the best coverage options at a price they can afford?

At 1Fort, we offer enterprise-grade protection and coverage for small and medium-sized businesses. You can help your clients mitigate their digital risk plus give them peace of mind by offering a solution that gives them both cyber security and cyber insurance.

Become a partner with 1Fort today, close cyber insurance deals in minutes, and earn incredible commissions!

Schedule a demo with a member of our 1Fort team.