Do Not Believe These Cyber Insurance Myths

By Samudra Vijay In Blog

13

Sep
2022

Do Not Believe These Cyber Insurance Myths

The risks to our businesses are increasing as the world moves online. Cyber insurance is one way to help your company recover after a cyberattack. It protects against financial losses caused by events such as data breaches, cyber theft, ransomware, and other threats.

Cyber insurance can be useful in a variety of ways because it typically covers the costs of:

• Data recovery
• Court proceedings
• Informing stakeholders of the incident
• Restoring those affected personal identities

Because of the complexities of cyber insurance, there are numerous myths that, if believed, can be detrimental to your business. Let us work together to disprove them.

Cyber insurance myths debunked

It is critical to debunk the top cyber insurance myths, such as the ones listed below, in order to make informed business decisions:

Myth #1: To protect my company from cyberthreats, all I need is a cyber insurance plan. That could not be further from the truth. Your insurance provider will only cover your business if you adhere to the terms of your policy. Most reputable insurers will require proof that you have implemented the preventative measures outlined in your policy. If you cannot demonstrate compliance, your claims are unlikely to be paid.

One of the most common insurance requirements is top-tier cybersecurity protection. Despite the abundance of cybersecurity solutions on the market, keep in mind that they are not all the same. It is critical to find a solution that offers the best protection for your specific requirements.

Myth #2: I do not need cyber insurance because I have cybersecurity solutions. While cybersecurity solutions can help you strengthen your defenses, they will not make you immune to cyber-attacks. Yes, cybersecurity solutions can reduce the risk of a cyberattack by identifying and protecting vulnerable points in your system. However, due to the difficulty of staying on top of emerging risks, no solution can provide complete protection against all threats.

Furthermore, human error can always result in vulnerabilities, no matter how secure a system is. That is why, in the event of an incident, having a cyber insurance policy in place is a good idea.

Myth #3: Obtaining cyber insurance is simple.

Cyber incidents are becoming more common as technology advances. The likelihood of an attack is high because small and medium-sized businesses are the most vulnerable targets of cybercriminals due to a lack of enterprise-level protection. As a result, insurers are hesitant to provide coverage because the risks are significant. While insurance is still available, it is becoming more expensive and difficult to obtain.

Myth #4: If I have cyber insurance, my claims will be covered in the event of an incident. If you cannot prove that you met the requirements of your cyber insurance policy, your claim will most likely be denied. Therefore, you should think about partnering with an IT service provider. An experienced IT service provider can assist you in remaining compliant with your cyber insurance policy and providing evidence of such compliance.

Partner for Success

It is critical that you do not believe the above cyber insurance myths in order for your company to qualify for a policy and receive coverage. However, it is also important to remember that cyber insurance takes much more time and effort than you might think.

Working with an IT service provider like us can show you how to increase your chances of receiving coverage and a payout in the event of an incident. Please contact us to arrange a no-obligation consultation.