Insurance technology company Slice Labs and AXA XL, a subsidiary of global insurance and reinsurance company AXA, have launched a cyber insurance policy for U.S. small and medium-sized businesses (SMBs). The Slice-AXA policy provides cyber insurance protection and real-time threat intelligence to help SMBs ward off cyberattacks, according to a prepared statement.
The Slice-AXA cyber insurance policy is designed for SMBs under $20 million in annual revenue and offers limits from $250,000 up to $3 million, the companies said. It includes coverage for data protection and privacy risks for third-party claims and first-party mitigation costs, along with protection against cyber extortion threats and other breach-related liabilities.
In addition, the Slice-AXA cyber insurance policy provides data to help SMBs understand their cyber risk exposure, the companies indicated. It allows SMBs to access a dashboard that provides an overall cyber risk assessment and scores, as well as benchmark scores for industry peers across various risk categories.
Do SMBs Need Cyber Coverage?
SMBs are increasingly susceptible to cyberattacks, and as such, cyber insurance is quickly becoming a must-have for these businesses.
Fifty-five percent of U.S. SMBs experienced a cyberattack between November 2016 and November 2017, according to the "Small Business and Cyber Insurance" report from the Insurance Information Institute (III). Also, 50 percent of SMBs suffered a data breach during this time frame.
SMB Cyber Insurance: Here's What You Need to Know
Not all cyber insurance policies are created equal. Without the right coverage in place, an SMB risks putting its brand reputation, revenues and sensitive data in danger.
III recommends SMBs obtain one or more of the following cyber coverages:
- Computer Attack: Safeguards a business against the costs associated with damage to data and systems caused by a computer attack.
- Cyber Extortion: Helps cover the costs to settle an "extortion" attempt against a business network.
- Data Breach Response and Liability: Protects against the costs and legal liability related to a data breach.
- Funds Transfer Fraud: Protects against losses from the transfer of funds due to fraudulent instructions from a person who claimed to be a vendor, client or authorized employee.
- Media Liability: Covers the defense costs and damages for copyright infringement and negligent publication of media claims for companies that produce online content.
- Network Security Liability: Offers defense and liability coverage against third-party lawsuits that allege damage due to inadequate network security.
The global cyber insurance market is projected to be worth approximately $14 billion by 2022, according to industry analyst Allied Market Research. As SMBs and other businesses search for ways to minimize cyber risk, these companies could invest in cyber insurance policies in the years to come.