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Don’t Fall for These Cyber Insurance Myths
As the world increasingly moves online, so do the risks to our businesses. Cyber insurance is one great way to help ensure your business can recover following a cyberattack. It covers a whole host financial losses caused by events such as data breaches, cyber theft, ransomware and more.
Cyber insurance can be beneficial in many ways since it typically covers the cost of:
- Data Recovery
- Legal costs
- Notification of stakeholders
- Restoration of personal identities
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. Let’s debunk them now!
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: A cyber insurance plan is all I need to be protected against a cyber attack
This couldn’t be further from the truth. Your insurance provider will only cover your business if you have met the requirements outlined in your contract. Most insurers will require proof that you have been following the measures according to your policy. If you can't prove your compliance, your claims are unlikely to be paid.
Myth #2: I don’t need cyber insurance since I have cybersecurity measures in place
Even though cybersecurity solutions can increase your defenses, they don’t make you or your company immune to cyber incidents. Cybersecurity solutions can reduce the risk of a cyberattack by identifying and protecting vulnerable points in your system. However, no solution can provide 100% protection against all threats because staying on top of emerging risks can be challenging.
Myth #3: Cyber insurance is simple to get
As technology advances, so does the regularity of cyber incidents. With small and medium-sized businesses being the most likely targets of cybercriminals due to a lack of enterprise-level protection, the chances of an attack are high. As a result, 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: If I have a cyber insurance policy, my claims will be covered in case there’s an incident
If you can’t prove that you’ve complied with your cyber insurance policy's prerequisites, your claim is likely to be rejected. This is why 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 as well as provide evidence of such compliance.
ICG is Your Partner for success
It’s crucial to not fall for common 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 consultation.
