Myths surrounding cyber insurance – here are the facts
As more of the world moves online, businesses face more significant risks of cyberattacks. Cyber insurance can help a business recover from such an attack by covering financial losses from data breaches, cyber theft, ransomware, and other events.
There are many benefits to having cyber insurance, as it typically covers the cost of:
• Legal proceedings
• Recovering data
• Restoring the personal identities of those affected
• Notifying stakeholders about the incident
Cyber insurance myths debunked
There are many misconceptions about cyber insurance. Busting these myths to make informed decisions for your business is essential. Some of the most common myths are:
Myth #1: Getting insurance for your cyber needs is easy.
As technology advances, so does the potential for cyber incidents. Global cyber-attacks increase the likelihood that insurers will refuse to provide coverage, as the risks are too significant. Even policies that are still available are becoming more expensive and difficult to obtain.
Myth #2: I don’t need cyber insurance since I have cybersecurity solutions
Even though there are many different cybersecurity solutions available, none of them can guarantee immunity from all cyberattacks. Solutions can help to identify and protect vulnerable points in your system but staying on top of emerging risks can be difficult. No single solution can provide complete protection against all threats.
Even the most secure systems are vulnerable to human error. That’s why it’s a good idea to have a cyber insurance policy to protect yourself in case of an incident.
Myth #3: All I need to protect my business from cyber threats is a cyber insurance plan
Having an insurance plan is not enough to protect your business. Your insurance company will only cover your business if you meet the requirements laid out in your contract. And most reputable insurers will require evidence that you have followed the measures outlined in your policy. If you cannot show compliance, your claims are unlikely to be paid.
One of the most common insurance requirements is that you have top-tier cybersecurity protection. However, despite the availability of various cybersecurity solutions in the market, keep in mind that not all of them are the same. Therefore, finding a solution that best protects your needs is crucial.
Myth #4: Having a cyber insurance policy in place ensures full coverage for my claims in case there’s an incident
Cyber insurance policies typically have several requirements that they require for a claim to be successful. If you are unsure whether you have complied with all the prerequisites, partnering with an IT service provider may be worthwhile. An expert IT service provider can help you ensure compliance with your policy and provide evidence of this compliance if necessary.
Partner for success
It’s crucial to not fall for the above myths about cyber insurance so that your business qualifies to 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.
Additionally, we created an infographic titled “What is Cyber Insurance and Why Your Business Needs Coverage” that you can download by clicking here.