As the world increasingly moves online, so do the risks to your business. Cyberattacks have been steadily on the rise for years, with a sharp increase in 2021. In just the first half of 2022, 817 U.S. companies experienced data compromises.
We’ve talked a lot in past blogs about how to protect your company’s sensitive data and keep your business secure. But if you do suffer a data breach, how do you ensure that both your business and your clients can recover?
Cyber insurance is one way to help your business recover following a cyberattack. It covers financial losses incurred from events like data breaches, cyber theft, and ransomware.
Cyber insurance can be beneficial in many ways. It typically covers the cost of recovering data, legal proceedings, notifying your stakeholders about the incident, and restoring the personal identities of those affected.
However, due to the complicated nature of cyber insurance, there are a lot of harmful myths out there you should be aware of. Let’s debunk four common cyber insurance myths together.
4 Common Cyber Insurance Myths Debunked
It’s important to make informed decisions for your business so you can ensure you are protected in the event of a cyberattack. Watch out for these common cyber insurance myths:
Myth #1: All I Need To Protect My Business From Cyber Threats Is a Cyber Insurance Plan
This could not be further from the truth. Your insurance provider will only cover your business if you meet the requirements outlined in your contract, and most reputable insurers will require proof that you have been following the proactive measures outlined in your policy.
If you can’t prove your compliance, you may have trouble getting payment for your claims.
One of the most common requirements of insurance providers is that you have top-tier cybersecurity protection. As you consider the wide availability of cybersecurity solutions in the market, keep in mind that they are not all the same. It’s crucial to find a solution that offers the best protection for your company’s unique needs.
Myth #2: I Don’t Need Cyber Insurance Since I Have Cybersecurity Solutions
Even though cybersecurity solutions can boost your defenses, they don’t make you fully immune to cyber incidents.
Cybersecurity solutions help reduce the risk of a cyberattack by identifying and protecting vulnerable points in your system. However, staying on top of emerging risks can be a challenge, and no solution can provide complete protection against all threats.
Additionally, human error often results 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 do the occurrences of cyber incidents. Small- and medium-sized businesses are the most susceptible to cybercriminals due to a lack of enterprise-level protection, so the likelihood of an attack is high. Consequently, insurers are reluctant to provide coverage because it puts them at considerable risk.
While policies are still available, they are becoming more difficult and expensive to obtain.
Myth #4: If I Have a Cyber Insurance Policy, My Claims Will Be Covered in Case There’s an Incident
Unfortunately, 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 should consider partnering with an IT service provider like SOL-I.S. As an expert IT service provider, we can help you stay compliant with your cyber insurance policy and provide evidence of such compliance should your insurance provider require it.
SOL-I.S.: Your Partner for Success
To ensure that your business qualifies for coverage, it’s crucial that you don’t fall for these common cyber insurance myths. It’s also important to remember that qualifying for and maintaining cyber insurance coverage is something that demands a lot more time and effort than you might have at your disposal.
Partnering with an IT service provider like SOL-I.S. can help keep your business safe from cybersecurity risks and help ensure that you qualify for cyber insurance coverage. We can help you increase your chances of receiving coverage and a payout in the event of an incident.
To learn more about how SOL-I.S. can partner with you to protect your business from cyber threats, reach out to schedule a no-obligation consultation.
Still not convinced that your business needs cyber insurance? Download our infographic: “What is Cyber Insurance and Why Your Business Needs Coverage.”