Cyber insurance: a must for SMEs

Cyberattacks in Israel: a growing danger Recently, two Israeli hospitals suffered a cyberattack. The consequences are dramatic, as essential equipment such as ventilators can be affected.

A few years ago, the favourite targets of hackers were multinationals. Today, according to a British study, 71% of cyberattacks target small and medium-sized enterprises (SMEs).

The impact of cyberattacks on SMEs Unlike a large group that must acknowledge an attack, an SME often tries to conceal the matter. However, it will take a long time to recover from a cyberattack.

A cyberattack forces the company to face the demands of fraudsters. They monetise stolen sensitive information, such as patient files from a cosmetic clinic or data from an accountancy firm. The disclosure of such information can cause serious consequences for patients and businesses.

Responding to complaints and insufficient protection SMEs struggle to handle the flood of complaints resulting from the harm caused by these leaks. They often lack the means to protect themselves effectively against these attacks, as hackers are becoming increasingly ingenious. Even secured IT systems do not guarantee total protection.

Concrete examples

Recently, a senior FBI official had to replace their pacemaker with a tamper-proof model. A senior executive at an Israeli insurance company was also the victim of a cyberattack. Fortunately, they had backed up their data on a USB drive.

How to deal with cyberattacks?

Some insurance companies now offer CYBER protection to cover the damage caused by these attacks. This protection includes:

Reimbursement of expenses to restore the IT network and clean the system of viruses.

Financial contribution to compensate for loss of revenue.

Partial coverage of money theft or embezzlement.

Support in the face of financial blackmail.

Compensation for damage caused to third parties.

Partial reimbursement of legal fees.

Coverage of communication costs to restore the company's reputation.

These elements are only part of the clauses of a cyber insurance policy, which is often very comprehensive.

The importance of cyber insurance for SMEs It is crucial for an SME not to ignore such insurance. Just as no one would forgo fire or water damage insurance, it is imperative to take out a cyber insurance policy to avoid an unmanageable disaster.

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