If you run a cafe, a flower shop, or a consultancy in Dubai, you probably have three things:
- A Trade License.
- Health Insurance for your staff.
- Fire Insurance for your office.
You think you are covered. But the world has changed. The thief is no longer smashing your shop window to
steal cash from the till. He is sitting in a basement in a different continent, stealing your customer
database.
Cyber Liability is the most dangerously ignored risk for UAE SMEs. 82% of small business
owners believe they are not a target. They are wrong.
1. The “Ransomware” Reality
It happens every week in JLT and Business Bay.
The Scenario
Your accountant opens an email attachment labeled “Invoice_Updates.pdf”.
Suddenly, every screen in the office goes black. A red skull appears with a message:
“All your files are encrypted. Pay 2 Bitcoin to unlock them.”
The Impact: You cannot access your emails, your client list, or your accounting
software. Your business stops dead.
The Cost: Even if you don’t pay the ransom, hiring an IT Forensic Team to restore your
systems from backups costs AED 20,000 to AED 50,000 per day.
Standard “Office Insurance” pays AED 0 for this. You need a dedicated Cyber Policy.
2. The “Data Privacy” Fine
The UAE now has a strict Data Protection Law (PDPL).
If you lose your customers’ credit card details or passport copies (e.g., a Travel Agency hack), you are
legally required to report it.
The government can fine you for “Failure to Protect Data.”
A Cyber Insurance policy covers:
- The Legal Defense fees.
- The Regulatory Fines (where insurable).
- The cost of notifying every single customer (“Sorry, we lost your ID”).
3. The “Email Spoofing” Fraud (Social Engineering)
This is the most common non-technical hack.
The Trick: A hacker monitors your email. They see you are about to pay a supplier in China
USD 50,000.
They send an email from an address that looks exactly like your supplier (e.g., supplier@gmaiI.com
vs supplier@gmail.com).
“Hi, we changed our bank account. Please wire the funds to this new IBAN today.”
You wire the money. It vanishes.
The Verdict: Banks won’t refund you (you authorized it). Police can’t track it.
Only a “Cyber Crime / Social Engineering” extension on your insurance will reimburse this loss.
Comparison: The Cost of Ignoring It
| Item | Cost |
|---|---|
| Cyber Insurance Premium (Average SME) | AED 3,000 – AED 6,000 / year |
| Cost of a Data Breach | AED 500,000+ (Lost business, reputation, IT repair) |
It is cheaper than your office coffee budget.
Is Your Business “Too Small”?
Hackers love small businesses.
- Big Banks: Have AED 100 Million security budgets. Hard to hack.
- You: Have a free antivirus and “Password123”. Easy to hack.
Automated bots scan the internet for weaknesses. They don’t care if you sell cupcakes or consulting. If your
door is open, they walk in.
FAQ: Cyber Defense
Q: I use the Cloud (Google/Microsoft). Am I not safe?
A: They protect their servers. They don’t protect your password. If you give your password
to a hacker (phishing), Google can’t stop them logging in.
Q: Does General Liability cover this?
A: No. General Liability covers “Bodily Injury” and “Property Damage” (kicking a hole in a wall). It
explicitly excludes “Data and Intangible Assets.”
code) turned on for your company email? If No, you are a sitting duck. Turn it on. Then call a broker for a
Cyber quote.