why it insurance is essential for global entrepreneurs

What do e-⁠resident founders need to be aware of about cybersecurity in 2025? How can they safeguard their businesses with IT Insurance?

This guest post about IT insurance for global entrepreneurs was contributed by IIZI, Estonia's largest insurance broker, which quickly and easily compares offers from different insurance companies locally and internationally in order to find the best insurance solutions for its clients. IIZI Insurance Broker is also a trusted member of the e-⁠Residency Marketplace.

Estonia’s e-⁠Residency program has revolutionised global entrepreneurship, offering over 120,000 e-⁠residents from 175+ countries the ability to remotely manage more than 30,000 companies. This borderless business model presents incredible opportunities, but it also introduces unique cybersecurity risks that entrepreneurs should be aware of.

Recent high-profile cyber incidents have made one thing clear—no business is immune. IIZI Financial Lines Specialist Helen Evert emphasises that IT insurance is no longer optional; it is a crucial safeguard for e-⁠resident businesses. She highlights how cyber insurance mitigates financial and reputation risks while ensuring resilience in an increasingly digital world.

A Reality Check: Even Leading Tech Companies Get Hacked

If a major IT corporation with extensive security resources can fall victim to cybercrime, what does that mean for smaller tech startups and remote businesses?

This question became especially relevant in early 2024 when Finnish IT company Tietoevry suffered a massive ransomware attack, impacting over 120 organisations across healthcare, government services, and retail. The attack, linked to the Russian ransomware group Akira, exploited a vulnerability in remote access VPN software. The total damages exceeded €100 million, serving as a stark reminder that even well-established IT firms remain vulnerable.

This raises critical concerns for smaller, globally distributed IT firms, SaaS startups, and e-⁠resident-founded businesses. Would they be able to recover from a similar attack? What financial and reputational costs would they face from an extended service outage? More importantly, does their current IT insurance policy provide adequate protection, or are there exclusions that could leave them exposed?

IIZI's Helen Evert underscores the misconception that general business insurance includes cyber protection:

How IT Insurance Protects Your Estonian Company

Despite common assumptions, general business insurance does not cover cyber incidents. A dedicated IT insurance policy is designed to mitigate financial losses from cyberattacks by covering ransom payments, system recovery, and lost revenue. Legal costs related to data breaches, including GDPR penalties, can also be offset by a comprehensive policy.

Business continuity expenses are another crucial component. Insurance ensures that companies can recover from downtime as quickly as possible, reducing the risk of prolonged operational disruption. Additionally, crisis management support, such as PR and communication strategies, helps protect a company’s reputation following an attack. Evert explains:

"The right policy provides access to expert incident response teams who can immediately assist in containing the damage, investigating the breach, and minimising harm to reputation. Without this, businesses may struggle to recover."

Key Considerations When Choosing IT Insurance for your Estonian Business

Selecting the right insurance policy requires careful evaluation. E-⁠resident-run businesses must ensure their coverage aligns with their global operations. Companies serving international clients should confirm that their policy includes protection against legal claims in multiple jurisdictions, particularly in regions with stringent data protection laws like the EU.

Many e-⁠residents depend on third-party cloud services such as AWS, Google Cloud, and Stripe. If these platforms experience an outage due to a cyberattack, does the policy cover resulting business losses?

Additionally, businesses in fintech, government services, or critical infrastructure must check for exclusions related to state-sponsored cyberattacks, as some insurers may not provide coverage for these incidents. The speed of claims processing is another factor to consider—prolonged delays can severely impact cash flow and recovery efforts.

Lessons from Recent Cyberattacks and Implications for e-⁠resident-founded Businesses

Recent incidents highlight key takeaways for remote entrepreneurs. The Crowdstrike outage in 2024 affected many companies from all over the world. A couple of well know Estonian technology companies (such as Hansab and Estanc) were hit hard by cyber attacks in recent years, and these attacks also affected clients.

This reveals that NO company is too small to be a target, and even technology firms with robust security teams have been successfully attacked. E-⁠resident-founded businesses face unique vulnerabilities due to their reliance on remote work, cloud infrastructure, and international compliance obligations.

"The cybersecurity landscape is evolving, and so are cyber insurance policies," concludes Evert. "Businesses must not only invest in security infrastructure but also ensure that their insurance coverage aligns with their real-world risk exposure.

For e-⁠residents operating SaaS companies, IT consultancies, or e-commerce businesses, cybersecurity risks must be treated with the same level of importance as financial management and legal compliance. A well-structured IT insurance policy, combined with strong cybersecurity practices, is essential to protecting both business continuity and long-term sustainability.