How Is Cyber Insurance Relevant To Businesses?

Organisations across the EU are likely involved in planning and preparation for a potential cyber incident that may impact their business in the future. This is because cyber attacks are doubling each year, according to recent published data. 

As a result, enterprises of all sizes now have to consider the risk level they may be exposed to with their networks and systems. The latest research available reports that public administrations in Europe were the target of around 2,000 cyber incidents between July 2023 and June 2024.

It’s not just public organisations that are being affected, with transport businesses suffering 1,100 incidents and financial institutions dealing with around 900 cyber attacks during the same period. Notably, it appears that businesses across all sectors could be vulnerable if they don’t have adequate safeguards in place. 

In this article, we examine the facts about cyber insurance, who might need cyber insurance, and how relevant it could be to your business. 

Contents

• What is cyber insurance?
• Who needs cyber insurance?
• How is cyber insurance relevant to businesses?
• Safeguard your business with GasanMamo cyber insurance. 

What is cyber insurance?

Cyber insurance, also known as cybersecurity or cyber protection insurance, is an insurance product that supports businesses to mitigate and manage cyber risk. Generally, this risk is posed by cyber actors who execute cyber crime activity, such as malware attacks, data breaches or phishing scenarios. 

Designed to protect organisations from the costs associated with internet threats to IT infrastructure, data stores or information repositories, cyber insurance works in the same way as other business insurance policies. 

Just like a business insurance premium that protects against natural disaster, cyber insurance helps businesses with the losses suffered through a cyber attack. Every individual cyber insurance policy will be structured differently, so it’s good to check with your insurance provider around specific policy details. 

Who needs cyber insurance?

If your business stores or transmits data and uses technology on a regular basis, then it’s anticipated that you will need cyber protection insurance. Some may think that it’s only larger or international enterprises that suffer cyber incidents, but the reality is that a business of any size can come under threat. 

In fact, it has been reported that cyber attackers frequently try to compromise small or medium businesses as they believe these organisations have less robust security systems and may not be able to withstand a cyber incident. 

Having a reliable and comprehensive cyber insurance policy protecting your business will help you rebut and repair if a cyber incident takes place. The size of your organisation won’t necessarily shield you from attacks, but with technology ever present in day-to-day operations, it makes sense to fortify your network. 

How is cyber insurance relevant to businesses?

There are many ways that businesses look to reduce their risk exposure. One such method is through the security offered with insurance policies. Taking out a cyber insurance plan is no different. 

Here are five key reasons why cyber insurance is relevant for businesses:

1. Financial protection

A necessary element, cyber insurance delivers protection for businesses against the costs related to cyber incidents. A cyber attack can be expensive, with possible fees for network repair, data recovery, legal services or regulatory fines to factor in. 

2. Ample coverage

A unique insurance policy type, cyber protection addresses the financial impacts that are the result of a cyber incident. If you undergo a cyber attack, your business may be interrupted and you may not be able to function without full access to your systems. 

A comprehensive cyber insurance policy should help minimise the impact of the costs created by a loss or restriction of business. 

3. Risk reduction

Typically, your cyber insurance provider will complete a risk assessment as part of the organisation of your policy. This process can help you identify areas of risk or vulnerability within your business, so that you can improve your network or data storage security.

4. Compliance alignment

These days, many industries have to meet regulatory or compliance requirements. For example, rules around customer information storage and security. An appropriate cyber protection premium can help you meet these obligations with coverage of fines that are the result of a breach. 

5. Operational efficiency

When customers can’t access your services or buy your products due to an interruption in your online offering, this can lead to a loss of customer business and impact customer loyalty. It takes time to generate trust in consumers and brand reputation can be damaged by a cyber incident. 

Maintaining a robust level of network and system security allows your customers to believe their data is safe with your business. This increases levels of trust, particularly if there is transparency around the levels of cyber protection you have in place. 

Safeguard your business with GasanMamo cyber insurance

GasanMamo offers cyber protection insurance under our Business Protect product range. There are three main areas that make up the insurance cover:

1. Incident response

Any investigation and other necessary costs incurred as a result of a security breach.

2. Data restoration

Costs incurred to restore access to your data assets or to recover, restore or replace any data assets that have been corrupted, destroyed or damaged.

3. Business interruption

Loss of business income and additional reasonable costs required to maintain business operations and services following a security breach.

Our cyber insurance policy is competitively priced. Ready to protect your whole business, our friendly team of experts know the insurance industry inside out and can offer insurance solutions that help your organisation to thrive. 

Discover more details about our extensive range of business insurance policies in our business insurance section or get in touch with our team for a chat. 

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.

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