Cyber insurance is one way to help your business recover following a cyberattack. As the world moves online, so do the risks to businesses. It covers financial losses caused by events such as data breaches, cyber theft, ransomware, etc. But there are myths. Don’t fall for these cyber insurance myths.
Insurance can be beneficial since it typically covers the cost of:
• Recovering data
• Legal proceedings
• Notifying stakeholders about the incident
• Restoring the personal identities of those affected.
Because of the complicated nature of cyber insurance, many myths out there can harm your business if you fall for them. Let’s debunk them together.
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: Best protection is a cyber insurance plan
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 followed the proactive measures outlined in your policy. Your claims are unlikely to be paid.
One of the most common insurance requirements is that you have top-tier cybersecurity protection. Despite the availability of various cybersecurity solutions in the market, keep in mind that 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 since I have cybersecurity solutions
Even though cybersecurity solutions can boost your defences, 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 answer 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 will cyber attacks. With small and medium-sized businesses being the most susceptible targets of cybercriminals because of 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: A policy will cover my incident claims
If you can’t prove that you’ve complied with your cyber insurance policy’s prerequisites, your claim will probably be rejected. 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.
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.
Cyology Labs can help you understand how to increase your chances of receiving coverage and a payout in the event of an incident. To learn more, reach out to schedule a no-obligation consultation, or visit us at www.cyologylabs.com/mssp.
