Cyberattacks can strike without warning—and when they do, the fallout can be costly. Lost data, disrupted operations, and a damaged reputation are just a few of the challenges businesses face after a breach.
That’s where cyber insurance comes in. It helps cover the financial hit from cyber incidents like ransomware, phishing attacks, or data leaks. But here’s the catch: not all policies are the same, and coverage depends heavily on your company’s security practices.
What Does Cyber Insurance Cover?
A good cyber insurance policy may help pay for:
- Recovering lost data and restoring systems
- Legal and regulatory costs
- Notifying affected customers and monitoring their credit
- Lost income due to downtime
- Ransomware payments (sometimes)
However, having a policy in place doesn’t guarantee a payout. If your business isn’t following cybersecurity best practices, your claim could be denied.
Why Claims Get Denied
Insurers will review your cybersecurity setup before approving a claim. Common reasons claims are denied include:
- Weak or missing security tools
- Unpatched software or outdated systems
- Poor recordkeeping of your cybersecurity processes
- No clear plan for responding to an attack
In short, if your defenses weren’t strong before the incident, your insurer may not help after the fact.
How to Improve Your Cyber Readiness
To stay protected—and to keep your insurance coverage reliable—make sure your IT strategy includes:
- Multi-factor authentication (MFA)
- Regular data backups and endpoint protection
- Timely updates and patch management
- A documented incident response plan
- Ongoing employee cybersecurity training
- Periodic risk assessments
How CTTS Can Help
That’s where we come in. At CTTS, we work with businesses like yours to meet and exceed the cybersecurity standards insurers expect. From daily IT support to long-term strategy, we’ll help you build a secure foundation—so if an incident does happen, you’re not left unprotected.
Need help making sure your business is cyber-insurance ready? Let’s talk. CTTS is here to help you prepare, prevent, and respond.
FAQs About Cyber Insurance
1. Does my business really need cyber insurance if we already have strong IT security?
Yes. Even with strong security measures, no business is completely immune to cyberattacks. Cyber insurance adds a financial safety net to help cover recovery costs, legal fees, and lost income if an incident occurs.
2. Will my cyber insurance cover ransomware payments?
Some policies do, but not all. Even if ransomware is covered, insurers may require proof that your business followed strict cybersecurity protocols before approving payment. Always review your policy details carefully.
3. How can CTTS help ensure my cyber insurance claim isn’t denied?
We help businesses meet and maintain insurer-required security standards—like implementing MFA, keeping systems patched, running regular backups, and training employees. This not only reduces your risk of an attack but also strengthens your position if you need to file a claim.
Contact CTTS today for IT support and managed services in Austin, TX. Let us handle your IT so you can focus on growing your business. Visit CTTSonline.com or call us at (512) 388-5559 to get started!