{"id":7032067,"date":"2026-08-07T14:08:41","date_gmt":"2026-08-07T14:08:41","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/cyber-risk-trends-to-watch-what-smart-companies-are-doing-about-it\/"},"modified":"2026-08-07T14:08:41","modified_gmt":"2026-08-07T14:08:41","slug":"cyber-risk-trends-to-watch-what-smart-companies-are-doing-about-it","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7032067","title":{"rendered":"Cyber Risk: Trends to Watch & What Smart Companies Are Doing About It"},"content":{"rendered":"


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\"Cyber<\/div>\n<\/header>\n

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Cyber losses for small and mid-sized enterprises (SMEs) are climbing. The costliest incidents increasingly involve business interruption. Ransomware and business email compromise (BEC) remain the top drivers of loss, demanding both stronger controls and sharper insurance strategies.<\/p>\n

What the Data Says: Key Claims Trends<\/h4>\n

In late 2025, NetDiligence released its 2025 Cyber Claims Report, which analyzed 10,402 cyber claims occurring from 2020 to 2024, with 98% of those claims from small to medium enterprises (SMEs,\n<\/p>\n

Cost Trends<\/h5>\n

> The five-year average cost for all SME cyber claims is $264,000, an increase of 29% from last year.<\/p>\n

> The five-year average cost for crisis services (defined below) is $152,000, with slight year-to-year decreases since 2021.<\/p>\n

    \n
  • Crisis services costs are defined as \u201ccosts associated with responding to the breach event. These costs include, but are not limited to, breach coach counsel, forensics, notification, credit\/ID monitoring, and public relations.\u201d<\/li>\n
  • Although costly (47% of claims cost when needed), these are necessary costs to properly remediate cyber attacks and comply with international, federal, and state regulatory requirements.<\/li>\n<\/ul>\n
    The Big Two: Ransomware & Business Email Compromise (BEC)<\/h5>\n

    > For SMEs, ransomware and BEC combined account for ~50% of claims from 2020 to 2024, and nearly 55% in 2024.<\/p>\n

    > Five-year average incident cost of a ransomware claim for SMEs: $631,000<\/p>\n

    > Average incident cost of BEC claim for SMEs: $98,000<\/p>\n

      \n
    • While the BEC average claim cost may seem small comparatively, BEC incidents often lead to funds transfer fraud, invoice manipulation fraud, social engineering and ransomware, thus ballooning the cost of second and third order consequences related to the initial breach.<\/li>\n<\/ul>\n
      Business Interruption (BI) is a Force Multiplier<\/h5>\n

      > SME claims that included Business Interruption averaged $1.4M in total incident cost across five years. This equates to ~650% higher than claims without BI.<\/p>\n

      > Ransomware incidents accounted for 81% of claims with a BI component, making ransomware a key focus for cyber defense investment.<\/p>\n

      Successful Cyber Risk Leadership<\/h4>\n

      While the risk is increasingly apparent, many company leaders struggle to lead effective cybersecurity conversations and meaningful improvement of their organization\u2019s defenses. At our recent 2025 Executive Risk Management Conference, Dr. Tim Cranny, Security Principal with Global Digital, shared practical executive-level insights, including:<\/p>\n

        \n
      1. Successful companies ground cybersecurity decisions in what really matters. <\/strong>
        What this means:<\/em> Anchoring security efforts to critical assets and business priorities (e.g., uptime, payment processing, client communications, PHI) and ensuring that every proposed control directly maps to protecting those assets and business functions.<\/li>\n
      2. Successful companies win with fundamentals.<\/strong>
        What this means<\/em>: Before chasing shiny tech solutions, successful companies are driving mastery of basics: identity hygiene, hardening, backups (immutable), monitoring, email security, payment verification, and tested recovery. Then \u201ctrust but verify\u201d\u2014measure results rather than effort and re\u2011check controls periodically to avoid false confidence.<\/li>\n<\/ol>\n

        Dr. Cranny\u2019s framing of cyber attacks as\u00a0chains of events\u00a0(not \u201cinstant bombs\u201d) is particularly useful: executives should push for\u00a0defense\u2011in\u2011depth\u00a0controls that\u00a0break the attack chain\u00a0at multiple points, and for governance that keeps teams focused on risk\u2011reducing outcomes over tool\u2011centric activity.<\/p>\n

        Insurance Perspective: Structuring Coverage for Today\u2019s Cyber Losses<\/h4>\n

        In conjunction with strong cyber risk mitigation practices, your cyber insurance coverage should align with your risk exposures and overall strategy. Best practices include:<\/p>\n

          \n
        • Match policy mechanics to real cost drivers.<\/li>\n
        • Ensure ransomware and BI coverage are adequate.<\/li>\n
        • Scrutinize limits and exclusions.<\/li>\n
        • Ensure self-retention aligns with liquidity and risk appetite.<\/li>\n<\/ul>\n\n

          If you\u2019d like help benchmarking your company\u2019s cyber risk, stress-testing your incident response & BI scenarios, or right-sizing cyber coverage, the team at Scott Insurance can facilitate a working session and deliver a prioritized action plan. Contact your Scott Risk Advisor today to get started.<\/p>\n

          \n
          \n

          Like this post? Share it.<\/h3>\n<\/div>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"

          Cyber losses for small and mid-sized enterprises (SMEs) are climbing. The costliest incidents increasingly involve business interruption. Ransomware and business email compromise (BEC) remain the top drivers of loss, demanding both stronger controls and sharper insurance strategies. 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