Cyber Insurance Myths Debunked: Separating Fact from Fiction

Cyber Insurance Myths Debunked: Separating Fact from Fiction

Cyber Insurance in the Age of Digitalization: A Safety Net For All Businesses Cyber threats change and with them the misconceptions about cyber insurance policies. We believe it’s high time to cut through the noise and attain the truth — which is why we’re debunking some of the most pervasive myths about cyber insurance.

Myth 1: Cyber Insurance is only for Big Business

Well here is a little fact for you… Big or small, small businesses are not immune to cyber attacks. In fact, they are frequently the first to have the spotlight on them because, by definition, they do not have the huge security budgets of larger organizations. Cyber insurance can offer you some financial protection and additional support in the event of a breach.

Myth 2: Cyber Insurance Is Too Cost-Prohibitive

A Business Is of A Certain Size, Geographic Area, And Level of Coverage That Affects the Cost of Cyber Insurance. Ranging from legal fees, fines, and reputational or business loss, the costs of a cyber incident are generally much higher than cyber insurance.

Myth 3: Cyber Risks Are Covered Under General Liability Insurance

Reality: Cyber Risks Are Generally Not Covered By Liability Coverage Cyber insurance is a product that is specifically created to protect the individual risks related to digital threats such as breaches of data, ransomware attacks, and even business interruption.

Myth 4: If we have robust IT security we do not need a cyber insurance

Reality: There is no such thing as a system that is in the world of IT security 100 % safe. Cyber insurance sits as a safety net in addition to these very best defenses, to cover handling and recovery from the incidents that a plethora of security measures may not be able to prevent.

Myth 5: Cyber Insurance Insures Everything In an Organization.

Fact: There are many costs incurred from cyber insurance, not only data breach costs, and these costs include crisis management, business disturbance losses, cyber extortion demands, reputational damage control etc.

Myth 6: Few Cyber Insurance Claims Get Paid

Insurance carriers do pay claims for cyber incidents this happens every day! In the event a claim arises, it is paramount that policyholders are aware of and compliant with their coverage and policy obligations to avoid unnecessary complications in the claims process.

Myths 7: Cyber Insurance Encourages Complacency in Cybersecurity

Cyber insurance providers are not encouraging complacency either, most demand that policyholders maintain some level of cyber hygiene. This is healthy as it keeps everyone on high alert and hopefully, on their toes with refining cybersecurity (chomping at those IT practices.)

Conclusion

Cyber insurance is a critical piece of a holistic risk management approach. Debunking these myths should allow businesses to begin making smarter decisions about their cyber insurance needs‚ and to make sure they are protected in a new world more interconnected than ever before.

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