5 cyber insurance myths debunked
Though cyber insurance is a well-liked word, still, many industries are not adopting it because of some myths. The news is sprinkled with stories claiming that cyber insurance policies are not fit for all and even worse; the claims are not getting paid. The uptick in the frequency and severity of cyberattacks have forced many companies to opt for cyber insurance policies to stay protected against threats. But because of myths and prejudices, companies are not welcoming cyber insurance policies wholeheartedly. You need to educate agents and policyholders to enhance awareness regarding the importance of cyber insurance.
1. Small businesses don’t get attacked by cybercriminals
This is the most common myth that exists in the field of cybersecurity. But every business (irrespective of the size) is vulnerable to attacks and can fall victim with just one click on a malicious email. As per the report by the SSL store, 1 in 3 breaches involves small and medium businesses. Another survey was conducted by Lockton in 2020 and according to the report, a small business is hacked roughly every 19 secs. Cyberattack will not only breach your data and imperative information, but it can also tarnish your market reputation and that’s why anyone can’t take a chance with it.
2. Cyber insurance never pays claims made
Before opting for a cyber insurance policy, you should read out clearly what it covers. Without reading it properly, you may not understand what exactly gets covered and what doesn’t. This makes it obvious to both parties what is insured, and to what extent. Try to understand the complex cyber jargon. But many insurance companies often explain these coverages and endorsements in a simpler way so that everyone can understand them. A research was conducted by the Insurance Information Institute and according to the report, 97% of people said their cyber insurance was adequate to cover their incident costs.
3. After purchasing cyber insurance, we don’t need to worry about cybersecurity anymore
This myth will cause huge financial damage to a company and its insurance provider.
Cyberattacks are evolving day by day and are getting technologically advanced. The only way to alleviate the risk of falling victim to them is by adopting basic cybersecurity hygiene.
This includes the implementation of Multi-factor Authorization (MFA) on all devices, systems, and cloud applications, cybersecurity awareness training for office employees, and frequent backups of all systems that deal with imperative data.
Very often businesses have inadequate knowledge of the cyber risk they are exposed to. That’s why you should opt for an insurance policy provider that will explain your organization’s risk profile and what types of insurance policies you need.
Surewise insurance policies offer a deeper evaluation with refined insights. The company will guide you on how to address security weaknesses.
4. If you are using cloud infrastructure, you don’t need to worry about cyber attacks
In reality, misconfigured cloud services are a common way for cyber frauds to penetrate businesses’ systems. Even if there is no misconfiguration, the data on the cloud can still be compromised.
That’s why you should take backups of data and systems to a device that is not connected to the internet. This gives protection to the company and its customers, partners, and vendors from their data being irrecoverable.
5. We are not dealing with any sensitive information, so we don’t need cyber insurance
The two prime sources of cyber claims are funds transfer fraud and system damage or business interruption as a result of ransomware. Funds transfer fraud is often carried out by criminals using fraudulent emails or connecting over the phone. They often request to transfer the funds from a legitimate account to their own. A company that deals with money to and from a business bank account is vulnerable to funds transfer fraud. In 2017, the WannaCry and NotPetya ransomware outbreaks paralysed many organisations from the manufacturing and logistics industries. These attacks didn’t penetrate data, but they crippled business-critical computer systems. So, the prime exposure was not a data breach but a system of business.
These are the top 5 cyber myths that need to be deflated.
Surewise is an established company that offers a spectrum of insurances including builders’ insurance, construction insurance, cyber insurance and many more. But before selecting a cyber insurance policy, you should thoroughly read what are the things covered by the policy.
To know more details about cyber insurance policies and their coverages, please visit the official website of Surewise.