In this technology-dominated world, cyber threats are more dangerous than ever before. Businesses of all sizes are at risk, as 43% of cyberattacks are on small businesses. Cyber insurance is an important component of your business protection plan. However, cyber insurance alone isn’t enough to protect your business. We recommend all clients have cyber insurance, complete a risk assessment, educate employees, and implement security measures, such as MFA, identity protection, and backup/data recovery. EZ Micro Solutions helps you bridge the gap between cyber insurance and Managed IT Services.
What is Cyber Insurance?
Cyber insurance is an insurance policy designed to help businesses recover from the many damages caused by cyberattacks. It typically covers a wide range of incidents such as data breaches and ransomware attacks. Cyber insurance coverage helps a business recoup financial losses associated with:
- Data recovery and replacement
- Customer notification
- Lost income
- Crisis management
- Legal expenses
- Damaged computer systems
While cyber insurance helps mitigate the fallout from these attacks, it is important to know that cyber insurance does not prevent them. Cyber insurance is important for all types and sizes of businesses. A data breach costs an average of $4.44 million globally, according to IBM’s 2025 Cost of a Data Breach Report. U.S. companies face significantly higher costs, averaging $10.22 million per breach, due to regulatory fines and escalation expenses. Advances in AI and automation are helping businesses identify and contain breaches faster, potentially reducing costs. However, unauthorized AI tools (“shadow AI”) can also create new vulnerabilities. Without robust cybersecurity measures in place, insurance providers may deny claims or offer limited coverage.
The Role of An MSP in Supporting Cyber Insurance
- Risk assessment and compliance to help your infrastructure meet regulatory requirements.
- Incident response planning to meet a major requirement for cyber insurance. EZ Micro Solutions works with businesses to develop, implement, and regularly update these plans.
- Ongoing monitoring and threat detection by assessing potential vulnerabilities and acting before there is a disaster.
- Managed backup and disaster recovery to ensure critical data is protected and recoverable in the event of an attack.
- Security awareness training that empowers employees to avoid, recognize, and respond to possible threats.
Cyber Insurance Coverage Checklist
Before choosing a policy, make sure your coverage includes:
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Data breach and ransomware recovery
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Business interruption and data restoration
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Legal, regulatory, and customer notification costs
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Network and privacy liability protection
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Crisis management and PR support
Insurers may also require:
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Multi-Factor Authentication (MFA)
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Regular data backups
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Employee security awareness training
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An incident response plan
Why You Should Partner with EZ Micro for Security
- EZ Micro specializes in security and compliance.
- We have extensive experience and strong partnerships to ensure you have the protection you need.
- Insurance providers often offer lower premiums to businesses with strong security measures in place.
- EZ Micro’s management plans reduce the risk of a successful attack.
- We partner with you to translate the complicated language of cyber-security and insurance regulations, so you have confidence you are following compliance regulations.
- Peace of mind for all team members.
Cyber insurance is a critical safety net, covering recovery costs after an attack. But remember, it’s designed for recovery, not prevention. True protection requires proactive security measures to reduce risk, and many insurers now mandate these defenses for coverage. Don’t wait until it’s too late, make sure your business isn’t just prepared to recover but also ready to prevent cyber threats from happening in the first place.
FAQ
What does cyber insurance cover for small and medium-sized businesses?
Cyber insurance typically covers the financial losses associated with cyber incidents such as data breaches, ransomware attacks, and network intrusions. This can include costs related to data recovery, legal fees, customer notification, system repairs, and business interruption. Some policies also help with crisis management and reputation recovery after an attack.
Is cyber insurance required for my business?
While cyber insurance isn’t legally required, it’s increasingly recommended, and in some industries, it’s becoming a standard expectation. Many clients, vendors, and partners now ask for proof of cyber coverage before doing business. Having a policy in place shows your commitment to cybersecurity and risk management.
Can I get cyber insurance without having strong cybersecurity in place?
You can apply for cyber insurance, but most insurance providers now require certain cybersecurity measures before offering coverage or full payouts. These can include multi-factor authentication (MFA), data backup and recovery plans, employee security training, and a documented incident response plan. EZ Micro Solutions helps businesses meet these requirements and strengthen their eligibility.
How can an MSP like EZ Micro Solutions help with my cyber insurance coverage?
A Managed Service Provider (MSP) like EZ Micro supports your cyber insurance by improving your overall security posture. We perform risk assessments, monitor your systems for threats, train employees, and ensure your backups are secure. Our team also helps you document compliance and create an incident response plan, both of which are key requirements for most cyber insurance policies.
What’s the difference between cyber insurance and cybersecurity services?
Cyber insurance is designed to help your business recover after a cyberattack, covering the financial and operational damages. Cybersecurity services, on the other hand, are focused on preventing attacks from happening in the first place. For true protection, your business needs both: insurance for recovery, and proactive cybersecurity solutions from EZ Micro Solutions to reduce your risk.