What can only be described as a Trojan Horse is awaiting many businesses around the world in this day and age. Something that at first can seem completely innocent, it is not until the Greek soldiers come spilling out from inside that these companies realize what has hit them. These Trojan horses can come in the form of something as innocent as an email from a colleague or supplier. The consequences stemming from it can range from data loss to even physical damage if connected infrastructure is hijacked.
For larger companies this damage can be mitigated because they have the financial means and the hardened infrastructure to deal with the problem. However for small to mid-size companies these attacks have the potential to spell disaster or even closure.
Despite these attacks becoming more frequent, one third of small businesses in the UK had reported some sort of cyber breach in the previous year and for medium sized businesses that number is a little more than half, according to a report published by the British government. Mark Camillo, the cyber leader at AIG, said less than two percent of all businesses in Europe have some sort of cyber insurance because they do not believe that they are going to be hit.
Cyber insurance in the United States however is much more widespread and mainstream. This is due to laws on the books that require these businesses to report any breaches or loss of data to regulators and customers. This cyber insurance covers these costs along with damage to IT systems, extortion and legal costs that can be associated with these kinds of losses as well as helping with prevention measures to keep these companies safe. With new EU regulations coming out in 2018 it is expected that cyber insurance will become more mainstream and widely used as these companies become more aware of the dire threat that they are facing.