}

“Cyber-light” is a term used to describe policies that are low on actual cyber coverage, so that the carrier can promote cyber as part of a package policy, at very little additional cost to the insured. But this coverage can do more harm than good, because it gives the insured a false sense of security.

For example, a cyber-light policy might sublimit notification costs at a measly $50,000. But a breach of any significant size will go through that amount quickly, and the insured will be left holding the bag for the balance of the cost. (Now it’s becoming clear why cyber-light coverage is free or nearly free.)

The ironic thing here is that state-of-the-art, robust cyber coverage would offer up to $1,000,000 in limits, for around $1,000 for a smaller company. And even for companies of up to $50M in revenue, this coverage can be very competitively priced.

According to one recent report in Insurance Business, a cyber underwriter stated that 90% of the attacks that the carrier she works for sees are targeted at businesses with revenues under $50M. Smaller businesses are easier prey for the bad guys, as these companies typically have less sophisticated IT security.

Cyber attacks can and do happen to small companies, which are the ones least able to deal with them if they are not properly insured.

With the extremely soft cyber insurance market, prices are very competitive. There is no reason to let your clients settle for cyber-light, and then come to you angry when they’re breached and their cyber policy turns out to be a dud.

We can help you secure strong, affordable coverage for your clients. Call us today for a quote!