As the world increasingly moves online, so do the risks to our businesses. Cyber insurance is one way to help your business recover following a cyberattack. It covers financial losses caused by data breaches, cyber theft, ransomware, and other attacks.

Cyber insurance can be beneficial in many ways since it typically covers the cost of the following:

  • Recovering data
  • Legal proceedings
  • Notifying stakeholders about the incident
  • Restoring the personal identities of those affected

Due to the complicated nature of cyber insurance, there are a lot of myths out there that can be harmful to your business if you fall for them. So let’s debunk them together.

Cyber insurance myths debunked

Busting the top cyber insurance myths like the ones below is necessary so that you can make informed decisions for your business:

Myth #1: All I need to protect my business from cyber threats is a cyber insurance plan

Your insurance provider will only cover your business if you meet the requirements outlined in your contract. In addition, most reputable insurers will require proof that you have followed the proactive measures outlined in your policy. If you can't prove your compliance, your claims are unlikely to be paid.

One of the most common insurance requirements is top-tier cybersecurity protection. However, despite the availability of various cybersecurity solutions in the market, not all are the same. Therefore, finding a solution that best protects your needs is crucial.

Myth #2: I don’t need cyber insurance since I have cybersecurity solutions

Even though cybersecurity solutions can boost your defenses, they don’t make you immune to cyber incidents. Yes, cybersecurity solutions can reduce the risk of a cyberattack by identifying and protecting vulnerable points in your system. However, no solution can provide complete protection against all threats because staying on top of emerging risks can be challenging.

Additionally, human error can always result in vulnerabilities in a system, regardless of how secure it is. That's why it's a good idea to have a cyber insurance policy 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. With small and medium-sized businesses being the most susceptible targets of cybercriminals due to a lack of enterprise-level protection, the likelihood of an attack is high. Consequently, insurers are reluctant to provide coverage since the risks are significant. While policies are still available, they are becoming more expensive and difficult to obtain.

Myth #4: My policy always covers every claim in case there’s an incident

If you can’t prove that you’ve complied with your cyber insurance policy's prerequisites, your provider will likely reject the claim. Therefore, 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 and provide evidence of such compliance.

Partner for success

It’s crucial not to 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 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.