Cyber Security is a business-wide risk that affects every aspect of an organization. Cyberattacks are among the most significant threats facing companies today, with manufacturing, technology, and healthcare industries being primary targets. According to IBM’s 2023 Cost of a Data Breach Report, the average global cost of a breach reached $4.45 million, with healthcare experiencing the highest costs at $10.93 million per incident. Manufacturing has become a growing concern as ransomware groups increasingly target supply chains, causing disruptions that extend beyond just digital assets. The tech industry, handling vast amounts of sensitive customer and proprietary data, faces sophisticated threats that can lead to severe financial and reputational damage. With risks escalating, organizations must ensure they have robust cyber insurance coverage—yet, simply working with a generalist insurance broker may leave businesses exposed to vulnerabilities they hadn’t anticipated.
Just as cybersecurity should not be siloed within an organization, neither should an organization’s approach to commercial insurance. Many companies rely on traditional brokers who specialize in general coverage areas like property & casualty (P&C) and employee benefits but lack deep expertise in cyber risk. However, cyber risk is not a standalone issue, it intertwines with all facets of business operations, from employee healthcare data security to executive liability and business continuity planning. A commercial insurance broker with cyber expertise brings a holistic approach, ensuring that cyber risks are not viewed in isolation but as an integrated part of the company’s overall risk management strategy. Cyber threats impact multiple areas of business, from compliance concerns in healthcare to intellectual property risks in tech, making it crucial for organizations to work with a broker who understands both cyber nuances and the broader insurance landscape.
A broker with a strong foundation in cyber risk and commercial insurance provides immense value by offering tailored coverage that aligns with a company’s overall risk profile. This includes identifying potential gaps between cyber liability policies and other critical coverages such as business interruption, directors & officers (D&O) liability, and errors & omissions (E&O) insurance. Furthermore, businesses thrive because of the synergy between different departments; HR, finance, operations, and IT all work together to drive success. Cybersecurity is no different; it affects and is influenced by every part of an organization. Having an insurance partner who understands this interconnectedness ensures businesses are not only protected from cyber threats but also positioned for long-term resilience. By working with a broker who specializes in cyber and commercial insurance holistically, companies can secure a more comprehensive, strategic approach to risk management and one that aligns with their overall business goals while mitigating the ever-growing threats of cybercrime.
