Why Do Half of Irish Businesses Still Lack Cyber Insurance. A Wake-Up Call

Cybersecurity risks are no longer distant threats faced only by global corporations. Today, every Irish business, from small family enterprises to large organisations, operates in a digital environment. Customer data, payment systems, email communications, and even day-to-day operations depend on technology. With this reliance comes exposure. Unfortunately, recent research shows that almost half of businesses across the UK and Ireland remain without cyber insurance. This gap creates unnecessary financial and reputational risks.

The Current Cyber Threat Landscape

Cybercrime is growing at an alarming pace. Attackers target vulnerabilities in systems, exploit human error, and use sophisticated methods to disrupt operations. Phishing scams, ransomware, use of AI and data breaches are now commonplace. The damage caused by these attacks can extend beyond immediate financial loss. Businesses can face regulatory fines, legal action, and a lasting blow to customer trust.

In Ireland, awareness of cyber risks is improving, yet many business leaders still underestimate the scale of the threat. Some assume their company is too small to be targeted. Others believe existing IT security tools offer enough protection. Sadly, the evidence suggests otherwise. Even the most robust systems, if not maintained, can be vulnerable (ask the HSE).  Attackers increasingly target small and medium-sized enterprises precisely because they often lack advanced security measures.

Why Businesses Avoid Cyber Insurance

Understanding why so many businesses remain uninsured is essential. Several key factors contribute to this gap:

1. Cost Concerns
    Many business owners view insurance premiums as an avoidable expense. Cyber insurance, however, should be seen as an investment in continuity. The cost of a single breach far outweighs the annual premium.
2. Misunderstanding Coverage
    Some leaders believe general business insurance already covers cyber incidents. In reality, traditional policies rarely include comprehensive protection against cyberattacks.
3. Perceived Complexity
    Insurance policies can seem technical and overwhelming. Without expert guidance, decision-makers may avoid the process entirely, leaving their businesses vulnerable.
4. Optimism Bias
    A significant number of owners believe an attack is unlikely to happen to them. This misplaced confidence can lead to risky decisions and inadequate protection.

The Real Cost of a Cyberattack

The financial impact of cybercrime can devastate a business. According to industry reports, the average cost of a data breach now reaches millions of euros. Even a smaller incident can create lasting disruption.

• Direct costs include ransom payments, IT recovery expenses, and potential regulatory fines under GDPR.
• Indirect costs involve downtime, loss of productivity, and reputational harm.
• Long-term costs can include customer churn, reduced investor confidence, and weakened business relationships.

For small and medium enterprises, these costs can be fatal. Unlike large corporations with deep reserves, smaller businesses often lack the financial cushion to survive.

What Cyber Insurance Actually Covers

Cyber insurance is designed to provide comprehensive protection. Policies vary, but common areas of coverage include:

• Data Breach Response: Costs associated with notifying customers, hiring forensic experts, and managing public relations.
• Business Interruption: Compensation for lost income caused by downtime following an attack.
• Legal and Regulatory Support: Coverage for legal expenses, GDPR fines, and compliance assistance.
• Cyber Extortion: Financial support if your business is subject to a ransomware demand.
• Third-Party Liability: Protection if customer data is compromised and claims are made against your business.

By providing these layers of protection, cyber insurance offers more than financial support. It delivers peace of mind and a structured response plan during a crisis.

The Role of Risk Management

Insurance is only one part of the solution. Effective cyber protection requires a proactive approach to risk management. Businesses should combine strong security practices with insurance coverage. Key steps include:

• Regular staff training to reduce the risk of phishing attacks.
• Frequent updates of software and systems.
• Implementation of multi-factor authentication.
• Regular data backups stored securely off-site.
• Development of an incident response plan.

These practices reduce vulnerabilities and make businesses more attractive to insurers, often lowering premiums.

Why Now Is the Time to Act

Delaying the decision to purchase cyber insurance is risky. The volume and sophistication of attacks continue to rise each year. Regulators also demand stricter compliance, especially regarding data protection.

Furthermore, customer expectations are evolving. Clients increasingly want reassurance that their data is safe. Businesses that demonstrate robust cyber protection, including insurance, strengthen trust and loyalty. In competitive markets, this can be a valuable differentiator.

Dolmen Insurance: Supporting Irish Businesses

At Dolmen Insurance, we understand the challenges faced by Irish businesses. Cyber threats may seem daunting, but you don’t need to face them alone. Our experienced advisors simplify the process, explain policies in plain language, and tailor solutions to your unique needs.

We work with leading insurers to provide coverage that matches the realities of today’s digital world. From SMEs to larger enterprises, our goal is to protect your operations, your reputation, and your future growth.

Practical Next Steps for Business Owners

If your business does not currently hold cyber insurance, now is the time to act. Begin by assessing your digital risks. Identify the types of data you store, the systems you rely on, and the potential consequences of a breach.

Next, speak with a trusted broker like Dolmen Insurance. Our team can guide you through available policies, explain exclusions, and ensure you understand exactly what is covered. Finally, combine your insurance purchase with a strong internal security program. Together, these measures will create a robust shield against growing cyber threats.

Cyber insurance is no longer optional. The statistic that half of Irish businesses remain uninsured should serve as a wake-up call. Cyberattacks are not limited to global corporations. They target businesses of every size, in every sector, across Ireland.

The financial and reputational damage caused by these attacks can be catastrophic. However, with the right insurance and strong risk management practices, businesses can face the future with confidence.

At Dolmen Insurance, our mission is clear: to protect Irish businesses against the risks of today and tomorrow. Don’t wait for a breach to highlight the gaps in your protection. Take action now, and ensure your business is prepared for the challenges of the digital age.

Contact our team today to learn how our Cyber and AI-driven insurance solutions can safeguard your business future.

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Disclaimer:
 The information provided in this article is for general guidance and educational purposes only. It does not constitute legal, financial, or insurance advice and should not be relied upon as such. While every effort has been made to ensure the accuracy of the information at the time of publication, Dolmen Insurance accepts no responsibility for any errors or omissions. Insurance policies vary, and coverage is subject to the specific terms, conditions, and exclusions of each policy. Readers are encouraged to seek independent advice and consult directly with Dolmen Insurance before making any decisions regarding insurance cover.