Cybersecurity Insurance Unveiled: What Every SMB Should Know
In the ever-evolving realm of cybersecurity insurance, small and medium-sized businesses (SMBs) are awakening to its critical significance. Originally designed for large enterprises, cybersecurity insurance has adapted to address the changing landscape of cyber threats. With the global average cost of a data breach now exceeding $4 million and rising, the demand for these policies is surging, offering SMBs tailored coverage options. However, premiums are also on the rise, escalating by 74% in 2021 due to increased cyberattacks and associated costs. Furthermore, the types of coverage offered are evolving, with some insurers excluding certain threats like "nation-state" attacks and ransomware payouts. Qualifying for cybersecurity insurance has become more stringent, with carriers scrutinizing factors such as network security and employee training. SMBs must stay informed and bolster their cybersecurity practices to navigate this complex landscape effectively.