A recent Aon Risk Solutions survey of 1,000 small and medium-sized enterprises (SMEs) revealed that while 31 percent of respondents are considering “developing their online presence as a key opportunity” in the next year, just seven percent currently have a cyber insurance policy in place. While many companies plan to increase their online presence, putting their organization and customer data at risk, the large majority do not see cyber coverage as a necessity – and brokers may be to blame. When asked why so many SMEs are reluctant to buy cyber insurance, Jeremy Barnett, senior vice president of marketing at NAS Insurance Services explained, “One reason is that it’s not being sold to clients properly. Many brokers are unable to identify risks that are not covered by their clients’ general liability policies, specifically things like cybercrime and ransomware.”
When business leaders think of cybercrime, they often imagine a cybercriminal hacking into a network to steal and sell customer data, or use it for illegal purposes. Cybercriminals today, however, often turn to ransomware as an easy and profitable alternative, leading to detrimental business interruption issues for SMEs. “Whether you’re a physician who manages patient schedules or an independent contractor who loses access to your billing and invoicing information, ransomware can have a significant impact,” Barnett explained. “It’s a matter of brokers being able to identify the areas of risk and then suggesting the appropriate cyber policy.” As a result, brokers must take the initiative in offering cyber policies to their clients, as they may be unaware of the growing cyber risks that SMEs face today. No matter the size of an organization, there is always a cyber policy that can fit its needs.