Cyber Insurance: Why It Is Critically Important for Modern Business Security

In today’s era of accelerated digitalization, almost all businesses — from small companies and large corporations to public institutions — work with vast amounts of valuable and confidential information. Data is stored on servers, in the cloud, and within complex digital systems. This brings convenience and efficiency, but also introduces new vulnerabilities.

What risks come with having a digital presence, and why should every responsible organization be adequately protected against the growing threat of cybercrime? In the lines below, we outline the key points.

What is cybercrime and why is it so dangerous?

Cybercrime is growing at a rapid pace and is becoming one of the most serious threats to businesses worldwide. A malicious attack can result not only in severe reputational damage, but also in financial losses that are often unbearable for small and medium-sized companies.

By definition, cybercrime is any illegal activity in which a computer, server, or mobile device is the target of an attack or is used to commit a crime. A successful attack can compromise:

• personal data of clients and employees;
• trade secrets and sensitive business information;
• passwords and access to bank accounts;
• databases containing confidential information.

Current trends in Bulgaria

According to data from the General Directorate for Combating Organized Crime (GDBOP), in 2024 companies and public institutions in Bulgaria were subjected to an average of over 1,020 cyberattacks per week per organization. This is 10% higher than the European average. Frequent targets include:

• small and medium-sized enterprises;
• government institutions;
• educational institutions;
• healthcare organizations.

The reason: a lack of resources and expertise to build expensive cybersecurity systems.

What is cyber insurance and what risks does it cover?

In response to these threats, the insurance sector has developed specialized solutions, and Euroins is the first company in Bulgaria to create cyber insurance products with broad coverage and global territorial scope.

“Cyber Smart” – protection for companies outside the IT sector
Suitable for businesses that are not technology-focused but handle sensitive data, such as:

• trading companies;
• manufacturing enterprises;
• service providers;
• financial and administrative organizations.

The policy covers:

• financial losses resulting from a breach of information security;
• expenses due to personal data leakage;
• cyber extortion;
• recovery from reputational damage;
• business interruption caused by a cyberattack.

“Cyber Tech Smart” – protection for IT companies and contractors

This policy is designed for:

• IT companies;
• software developers;
• system administrators;
• technology contractors.

Coverage includes:

• professional liability for errors and omissions in the work process;
• damages to third parties resulting from IT activities;
• expenses related to mitigating the consequences of an attack;
• actions of dishonest employees.

Cyber insurance is increasingly becoming an essential part of business protection, with companies seeking solutions tailored to their risks and specific needs.

For more information about our available solutions, you can explore our cyber insurance products.

Who needs cyber insurance?

According to recent data, only 2% of Bulgarian companies have active cyber insurance. This places the country at the bottom of European rankings for cybersecurity investment.

Cyber insurance is recommended for:

• Small and medium-sized enterprises (SMEs) — often without their own IT department;
• Online stores and e-commerce businesses;
• Companies that process large volumes of personal data;
• Law firms and accounting offices;
• Organizations with a strong online presence.

A single successful cyberattack can lead to the bankruptcy of a small company, as restoring systems and reputation requires significant resources. Cyber insurance provides essential financial and operational stability.

The Three Most Common Cyberattacks

1. Phishing
Emails or messages are sent that appear to come from a trusted source — a bank, online store, government institution, or colleague. The goal is to trick the user into opening a malicious link or file and providing sensitive information.

2. Ransomware
Malicious software that encrypts files in the system. A ransom is then demanded to unlock them. This type of attack can paralyze an entire company’s operations.

3. Data Breach
Unauthorized access to a database containing personal or financial records. The information is often sold on the dark web or used for fraud.

How to Protect Yourself: 7 Recommendations from the European Parliament

1. Be suspicious of unexpected emails, calls, and messages.
2. Learn to recognize AI-generated content (deepfakes).
3. Be cautious about disinformation and fake news.
4. Secure your home and office Wi-Fi network.
5. Use strong passwords and enable two-factor authentication.
6. Keep your devices protected and update software regularly.
7. Restrict system access only to users who truly need it.

Source: https://www.europarl.europa.eu/ 

Conclusion

Cybersecurity is not a one-time action but an ongoing process. The combination of technological protection, employee training, and adequate cyber insurance is the most reliable way to ensure stability, resilience, and peace of mind for your business in the digital era. Euroins offers specialized solutions that can be adapted to the needs of any organization—regardless of its size or field of activity. If you would like a consultation or a quote for cyber insurance, you can contact our team.