Cyber breaches are becoming a reality for businesses across the board. As cyber crooks swell in numbers and employ more complex and sophisticated methods to achieve their evil ends, businesses are under pressure to protect their valuable data and systems.

By Simon Campbell-Young, MD of Intact Software Distribution

The problem is, no matter how much money a company throws at security solutions, the common maxim is that it’s only a matter of time before a business is breached – if it hasn’t been breached already. This is why many security solutions providers are adding cyber insurance to their mix of offerings.

The impact of breaches today can be so severe, and result in such substantial financial and reputational losses, that companies cannot afford not to have it. A basic policy will cover an organisation’s liability for a security event that sees in proprietary or confidential data being exposed. Other policies could cover fines due to breach of regulations, bringing in professionals for crisis management, and even extortion fees in the event of ransomware.

The type of policy a business chooses is dependent on the type of business it is, its levels of and appetite for risk, the measures and tools it has in place, and an assessment of the critical risks unique to that company. However, a large percentage of big organisations simply aren’t buying cyber insurance. This presents a massive opportunity for the channel.

Channel players have the opportunity to become resellers of cyber insurance policies, which will create new revenue streams for them. Every business is different, and will have different security needs. But resellers should consider selling these policies once they have fully assessed the business, and have a better understanding of its risks.

Cyber insurance can be bundled with their usual security service offerings, and will definitely add value to the proposition. Many businesses prefer to work with one provider, and in this case, you could have one reseller sorting out your physical products, your services and maintenance, and they could add insurance to the mix.

There is definitely an opportunity for insurance providers to work with resellers, and come to an agreement on an acceptable margin for the reseller, or commission on policies sold, which could be substantial depending on the volume of clients.

No industry is safe from attack. From retail and manufacturing, to healthcare and financial services – cyber crooks are getting in, and holding businesses to ransom. It’s not a case of “if” but “when”, and businesses cannot afford to ignore the possibility.

Their best chance is to develop systems and policies to mitigate risk, and ensure that they are covered in the event these measures fail. And someone is going to be making money from selling cyber insurance, so resellers, with increasingly shrinking margins, should seriously consider the proposition.