As more and more of our world moves online, so do the risks to our businesses. Data breaches, cyber theft, ransomware, and more are constant threats. Cyber insurance is one way to help your business recover from financial losses following a cyber attack. It’s beneficial in many ways as it typically covers the cost of:
- Recovering data
- Legal proceedings
- Notifying stakeholders about the incident
- Restoring the personal identities of those affected
However, cyber insurance can be complicated, and there are a lot of myths out there about it. If you fall for them, these myths can be a detriment to your business. Let’s debunk them together so you can make informed decisions for your business.
Cyber insurance myths debunked
Myth #1: All I need to protect my business from cyber threats is a cyber insurance plan
This could not be further from the truth. Your insurance provider will only cover your business if you meet the requirements outlined in your contract. Most reputable insurers require proof that you have been following the proactive measures outlined in your policy. If you can’t prove your compliance, your claims probably won’t get paid.
One of the most common insurance requirements is that you have top-tier cybersecurity protection. While there are a variety of cybersecurity solutions available, not all of them are the same. Finding a solution that offers the best protection for your needs is crucial.
Myth #2: I don’t need cyber insurance because I have cybersecurity solutions
Even though cybersecurity solutions can boost your defenses, they don’t make you immune to cyber incidents. No solution can provide complete protection against all threats because staying on top of emerging risks can be challenging.
In addition, human error can always result in weaknesses in a system, regardless of how secure it is. That’s why it’s a good idea to have a cyber insurance policy in place to fall back on in case of an incident.
Myth #3: Cyber insurance is easy to get
As technology advances, so do the occurrences of cyber incidents. Because they typically lack enterprise-level protection, small and medium-sized businesses are the most susceptible targets of cyber criminals. The chances of an attack are high. Consequently, insurers are reluctant to provide coverage since the risks are significant. While policies are still available, they are becoming more expensive and harder to obtain.
Myth #4: If I have a cyber insurance policy, my claims will be covered in case there’s an incident
If you can’t prove that you’ve complied with your cyber insurance policy’s prerequisites, your claim is likely to be denied. This is why you might want to consider partnering with an IT service provider. An expert IT service provider can help you remain compliant with your cyber insurance policy as well as provide evidence of such compliance.
Partner for success
It’s important not to fall for these common myths about cyber insurance. Understanding the truth can help your business invest in a policy and receive coverage. However, it’s also important to remember that cyber insurance is something that demands a lot more time and effort than you might have.
To protect your business effectively, you should partner with an IT service provider like us who can help you understand how to increase your chances of receiving coverage and a payout in the event of an incident. Reach out to schedule a no-obligation consultation.