Cyberattacks are no longer a “big business” problem; they’re every business’s problem. In Quebec, SMBs are increasingly becoming targets of ransomware, phishing, and data theft. That’s why cyberinsurance has moved from “nice to have” to essential.
But in 2025, getting coverage is no longer automatic. Insurers are raising the bar and asking for proof that your business is doing its part to manage cyber risk.
Here’s what you need to know to protect your company and prepare for a cyberinsurance policy that actually works when you need it.
What Is Cyberinsurance?
Cyberinsurance (or cyber liability insurance) helps protect your business from the financial fallout of a cyber incident. Depending on your policy, it may cover:
- Ransomware payments and recovery costs
- Business interruption losses
- Incident response services (IT forensics, legal, communications)
- Regulatory fines and legal fees
- Data breach notifications and credit monitoring for affected clients
- Third-party liability if your systems cause damage to others
For many SMBs, it’s the safety net that helps them survive a breach.
What’s Changing in 2025?
Insurance providers have been overwhelmed by rising claims in recent years especially from ransomware. As a result, they’re being much more selective and often require businesses to prove they have the right protections in place.
In 2025, you’ll likely need to show:
- Multi-factor authentication (MFA) across all users
- Regular data backups — ideally offline or immutable
- Endpoint protection (EDR) on all devices
- A formal incident response plan
- Employee cybersecurity awareness training
- Strong password and access controls
- Vendor risk management practices
- Updated and patched systems
If you don’t meet these requirements, you might not get coverage or your claim might be denied.
How Much Cyberinsurance Do SMBs Need?
There’s no one-size-fits-all number, but here are some general guidelines for SMBs:
- Smaller SMBs (fewer than 50 employees, low data sensitivity): $250,000 to $500,000
- Mid-sized SMBs (50–200 employees, client data or online payments): $1M to $2M
- Regulated or high-risk sectors (legal, finance, health, tech): $5M or more
A Smart Approach
- Do a risk assessment to estimate potential losses
- Don’t underinsure,coverage gaps are costly
- Work with a broker who understands cyber risk
What Kind of Coverage Should You Get?
First-party coverage (you):
- Ransomware recovery
- Data restoration
- Lost income from downtime
- Legal/PR/IT incident response
- Client notification costs
Third-party liability (others):
- Legal defence if you’re sued
- Regulatory penalties
- Damages if you impact another party
What to Watch Out For
- Exclusions: Some policies don’t cover phishing or unpatched software
- Claim conditions: You must meet technical requirements (like MFA)
- Time limits: Report incidents quickly (usually 24-72 hours)
- Coverage caps: Ensure it reflects the real cost of recovery
How S3 Can Help
At S3, we’re helping our clients navigate the changing landscape of cyberinsurance. That means not only helping you qualify, but also reducing your risk and improving your security posture in the process.
Cyberinsurance doesn’t replace cybersecurity, but together, they are a resilient strategy.
Want guidance on getting covered in 2025? Let’s talk.
