Cyber Insurance: The Next Big Thing

cyber security insurance

By Braden Mack, Business Insurance Advisor

Your business insurance portfolio is no longer complete without cyber insurance. With ransomware attacks like the ones on the Colonial Pipeline, JBS, and the Oldsmar water supply—that almost led to toxic levels of sodium hydroxide in the water—making headlines more and more regularly, it’s time to protect your digital assets and operations. And no, it’s not just big companies at risk; we may only hear of the attacks on major entities, but smaller businesses can be just as vulnerable—and enticing—in cyberspace. This all may sound a lot like Sandra Bullock being stalked in The Net; fortunately, getting protection and coverage is much easier and more common today than in the cyber thrillers of decades past.

The principle is the same here with cyber insurance as it is with other insurances: you may not be particularly concerned about someone stealing your car, but it’s still wise to have comprehensive auto insurance coverage to protect against the possibility. Cyber insurance provides the same peace of mind for your digital assets as your auto insurance does for your vehicle. Our carriers offer a range of protection options and limits, from $50k and even up to several million in coverage. Higher limits are often needed to meet contractual obligations of particularly vulnerable industries, but an increasing number of industries are seeing the benefits of higher limits—and with good reason. According to Fitch Ratings, the average paid loss for a closed standalone cyber claim went from $145,000 in 2019 to $358,000 in 2020, more than doubling in a year. Cyber insurance makes at least double the sense now, too.

This rise in claims is undoubtedly due to the consequences of the COVID-19 pandemic. Many organizations weren’t adequately prepared for the transition to a world of zoom meetings and remote workspaces. With so many people working remotely—especially those who may have not had jobs that required them to be digitally-savvy or protected, cyber-crime became all that much easier and more common. As many of these transitions are still in place, and with the mass increase in digital work environments in place for the foreseeable future, the need for cyber insurance is an immediate reality. The sooner you can cover your digital assets, the better. As losses continue to mount for insurers, their underwriting requirements will become more stringent and prices will continue to climb. Like with all other types of insurance, the better loss history you can show potential future insurers will go a long way in keeping cyber insurance available and affordable for your business. Now is the time to invest in cyber insurance—and peace of mind.

About Heacock Insurance – Serving Central Florida since 1922.

Heacock Insurance is a fifth-generation, family-owned agency serving Central Florida since 1922. Founded in Sebring by Austin Heacock, his agency was, at the time, the only insurance agency located along “The Ridge” of Central Florida. Austin’s core belief in starting his endeavor was to be an honest and dependable provider of services he knew people needed.

Nearly a century later, with offices in Lakeland and Sebring, at Heacock Insurance, it’s our policy  to hold true to the family values of professional integrity, commitment and personal service upon which we were founded.