Cyber liability insurance - the opportunity

A topic that often comes up is the topic of cyber liability insurance, its need, and how it helps protect your business.

The truth is that obtaining cyber liability insurance and retaining that insurance has never been harder. With requirements that have continued to climb an opportunity remains for all.

How it used to be

You simply told your provider you needed it, obtained the quote and you were good. However, the sheer number of claims increased together with the payout amounts quickly forced the insurance industry to re-evaluate the whole market itself. Many providers stopped providing cyber liability insurance at all.

Cyber liability by numbers-

• In the last three years cyber liability claims have risen 100%!
• The frequency of claims increased by 12%.
• The average loss amount has grown by 43%.
• Not all cyber liability claims can be attributed to ransomware, other more complex attacks have included phishing and spear phishing attacks.
• The payout amount has increased by 200% annually year on year.

Those numbers should scare anyone. Hopefully, those numbers begin to paint a picture of risk together with opportunity.

The opportunity for all

In 2024 we are all presented with the challenge to increase the security posture of our clients with zero trust principles, managed 24/7 SOC together with a multitude of other protections.

Here is how I feel MSPs can assist clients and prospects with protecting their businesses better.

• Quarterly meetings with clients, making cyber security an agenda topic to add to those meetings.
• A clear indication of gaps that your client has, and discussions around what might happen if those gaps go unresolved.
• Budget conversations so we can discuss increasing budgets where possible to address those gaps.
• Vulnerability assessments to understand gaps the client has. This can often help you as the provider as well.

Renewing cyber liability policies will only continue to become more complex. That will not change, however, the ability to answer those questions in an affirmative remains an opportunity for all.

That being said you will need to build the systems and processes to both highlight those.

Securely yours,

Scott