Are you the proud owner of a small business that wants to protect its brand and assets? The exponential rise in cybercrime should be one of your main concerns so consider cyber insurance for small businesses.

Cyber security threats will increase fourfold over the next few years. Even more, hackers are consistently launching cyber attacks with more sophistication and innovative techniques than before. Henceforth, security breaches such as email threats are a growing problem for businesses worldwide.

Read on to discover why you need cyber insurance for small businesses and explore the top companies in South Africa that might cover your needs.

Who Needs Business Cyber Insurance?

The short answer is: Any business that stores sensitive information and other valuable data.

Data is the main thing that hackers are after because they know how valuable it is to a company, whether big or small. Hence why cyber attackers seek to extract personal information such as addresses and credit card information from employees and clients, which they can then use to launch an attack.

South Africa faces some of the highest rates of cyberattacks in the world, making the top-30 list of most hacked countries. Therefore, South African business owners have even more reason to consider cyber security measures, which includes insurance cover.

5 Reputable Cybersecurity Insurance for Small Businesses

Now that you know that you need cybersecurity, the first step is to determine the cyber insurance that best fits your business. With this purpose in mind, compare ‘n review offers business insurance quotes to help you find the foremost insurance company that will cover cyber liability.

Here are five reputable companies that cover cyber insurance for small businesses in South Africa:

1. King Price Insurance

King Price Insurance helps businesses pick up the pieces after cyber criminals have breached them. Get a quote from King Price Insurance to learn more about their cyber insurance coverage.

2. Discovery

Cover your business against cyberattacks with Discovery Business Insurance. Then take a  look at Discovery’s update on cyber cover to see what they have to offer.

3. SHA

SHA is a division of Santam, and is a risk specialist that covers incidents that emerge from cybercrimes, such as data breaches. The insurance company covers plenty of cyber security liabilities from first and third-party involvements. Lastly, the company covers data breach and restoration, cyber extortion, network security, media, etc.

4. Aon

The Aon Cyber Liability Insurance Broking Solutions do not only cover your losses. Moreover, Aon helps to protect an organisation from cyber threats and investigates and assesses potential cyber-related risks.

5. Chubb

Chubb’s Cyber Enterprise Risk Management understands today’s cyber and data risks that hinder businesses of all types. Additionally, Chubb offers a comprehensive cyber risk cover that includes legal costs, reputational risk mitigation expenses, online media liability, data loss, etc.

5 Reasons to Invest in Cyber Insurance, Small Business

The biggest mistake a modern business owner can make is to think that they do not need cyber protection and insurance. As of 2022, the question is not, will my business get hacked? Instead, when will my business get hacked?

Here are five solid reasons why your small business needs cyber insurance:

1. To Protect Business Reputation

A data breach could cause severe complications and reputable damage to a business. Small businesses rely on a good, trustworthy reputation to compete with big corporations. Therefore, a damaged reputation can result in profit-loss and a decrease in support from clients or customers.

2. To Protect Affiliate Connections

Cybercriminals might use your small business to get their hands on more prominent corporations. Thus, a small business might lose a valuable affiliate connection from an authoritative company because they weren’t taking cyber security seriously.

3. To Comply with Governmental and Industry Regulations

Avoid penalties and damage fees by adhering to authority rules. Keep in mind, there are specific requirements and cybersecurity standards that exist for a reason.

4. To Protect Intellectual Property

Imagine working day and night to materialise a unique idea that could convert excellent profitability — only to have it stolen. Theft of intellectual property is often the motivation for cybercrime. Nonetheless, the best that any business owner can do is to cover their intellectual property in the case of falling victim to this crime.

5. To Improve Remote Work Adaptation

The 2020 pandemic engendered a remarkable shift from office to remote working for many businesses. Due to this fact, many cyber attackers are now phishing employees. The hackers manage to obtain crucial insider details and password information.

Therefore, the phishing scam has proven to be efficient for cybercriminals and is a growing concern. Also, It is believed that employees are lazier or more relaxed at home, making them prone to mistakes. This allows gaps for ransom and malware attacks to occur more frequently.

Cybersecurity: Types of Risks

Here are five common cybersecurity threats that can be a risk to any small business:

1. Ransomware Attacks

Ransomware is the most common attack on present-day data. This happens when an attacker encrypts an organisation’s data, rendering valuable information inaccessible. Eventually, a ransom needs to be paid first before the targeted business can access their data.

2. Malware Attacks

Malware is any harmful cyberattack that targets the software of a computer system. Moreover, cyber weapons such as trojans, viruses and worms are used to execute these attacks.

3. Email Threats/Phishing

Hackers catfish people by using emails that look authoritative and legitimate. Phishing could prompt a company’s clients or employees to give away confidential information mistakenly. Evidently, many attackers use this technique to obtain credit card information, which causes many businesses great financial loss and losing their clients’ trust.

4. Social Media Attacks

Many businesses are now networking on social media sites to grow a steady customer base. Thus, cyberattacks have recently been launched through social media sites linked to businesses. These attacks can involve gaining control over a site, accessing valuable personal information, and social networking infrastructure attacks.

5. Data Breaches

A data breach is a security violation. Sensitive and confidential data can be stolen or copied by an outsider. Data leakage is detrimental to any business as the inner workings of its success could be exposed to competitors or used for malicious reasons.

Final Thoughts on Cyber Insurance for Small Businesses

Cyber insurance for small businesses in South Africa is a much-needed asset. In truth, most businesses fall short in vital areas of cybersecurity.

What’s even worse is that most small business owners think they do not need cyber insurance and that only bigger companies are at risk. With this mentality, you will be setting yourself up for vulnerabilities and unnecessary setbacks.

Finally, make the smart choice to invest in cyber insurance, fend off hackers, and protect your business.