use these tips to sell cyber to your customers
Cyber insurance is becoming increasingly important as businesses of all sizes face ever-increasing cyber threats. Despite the prevalence of cyberattacks, only 21% of small businesses and 58% of large businesses have separate cyber insurance, according to hiscox, a leading insurance provider specializing in small and niche business insurance market. brokers and agents are positioned to bridge this gap and express the importance of cyber insurance in the digital age.
The good news is that you don’t have to be a cyber expert to sell cyber insurance. At Prowriters, we’ve broken down what you need to know to make the case for your clients. Learn how to better sell cyber insurance to your customers with these tips from our cyber experts.
Reading: How to sell cyber insurance
Communicate the costs of a cyber incident
All of the attacks listed above come at a cost to your clients. the small premium a customer pays for insurance pales in comparison to the costs of a data breach when paid out of pocket. Expenses associated with a data breach are a major reason why 60% of businesses close within six months of a cyber breach.
a study by kaspersky lab describes the possible losses associated with a cyber attack. Depending on the size of the business and the amount and type of data stolen, here are the costs your customers might have to pay, on average:
- devices compromised with sensitive data: $83,000-2.8 million
- malicious viruses and malware: $68,000-519,000
- targeted cyberattacks: $188,000-2 million
- Ransomware This occurs when a hacker takes control of a business’ or individual’s computer system and prevents access while holding the data hostage. The hacker will demand payment to unlock the data and threaten to release sensitive information or delete the data if the ransom is not paid.
- phishing attacks hackers pose as legitimate individuals or entities to gain access to sensitive information, including usernames, passwords, and network credentials. they use this information to gain further access to restricted data. According to the Enterprise Phishing Resiliency and Susceptibility report, 91% of targeted cyberattacks can be traced back to a phishing email.
- eavesdropping attacks these attacks target data transmitted over a network between computers, smartphones, or other devices. These attacks are very difficult to detect, and the target often doesn’t realize their data has been compromised until it’s too late.
- Third-Party Attacks Even if your customers take proactive steps to protect their data, if they do business with or outsource third-party vendors, your data could be compromised if the third party is breached. in the event of a breach by a third party, your client may still be held liable.
- notification costs to inform customers, regulators and the media
- forensic/investigation costs from you to determine the cause and size of the breach
- credit protection costs to provide mandatory financial supervision services
- costs for breach of contract
- legal defense costs
- regulatory fines and penalties / pci fines and assessments
- ransomware/extortion payments or costs associated with rebuilding your network
- business interruption costs
Without cyber insurance, your clients would have to pay these costs themselves. ask your customers if they could afford this type of catastrophic event if it happened tomorrow. if they can’t, explain that they need cyber insurance.
explain cyber risks to customers
Client education is a central part of selling cyber insurance. this means effectively communicating the risks of a cyber incident to businesses of all sizes.
Perhaps one of the most important parts of this is explaining the likelihood of a cyber attack. many businesses, particularly small businesses, think it will never happen to them. Unfortunately, being a small business doesn’t protect you from attack; in fact, it can put you at greater risk.
Nearly half of small businesses experienced a cyberattack in the last year, according to a report from hiscox. of those businesses, 44% were attacked two to four times. This is consistent with findings from the National Cyber Security Alliance, which found that more than 70% of cyberattacks target small businesses. explaining this to your clients can go a long way in showing them why cyber insurance is so important.
Explaining the specific types of cyber threats your customers face is another strategy that helps communicate the risks involved. While the list below is not exhaustive, it does describe common cyber attacks and what they mean for your customers:
discuss what a policy covers
It’s important for your clients to understand what a cyber policy would actually cover. cyber insurance is more comprehensive than ever, with comprehensive policies that fully protect your client in the event of a breach. With a policy, many of your clients’ costs would be covered, including:
If you’re wondering how to sell cyber insurance to your customers, consider having a discussion that outlines the specific cyber risks they face, the costs associated with those exposures, and what cyber insurance will cover. you can make a strong case that the small premiums would be worth it.
When your client is ready, you can show them their options through our cyber iq rate comparison portal. This powerful tool gives you multiple quotes from major carriers and a complete quote comparison document in just minutes. For more information or more tips on selling cyber insurance, contact one of our cyber experts today!