Common misconceptions of Cyber insurance

July 24th, 2023 Posted by Updates

If your business has never been the victim of a cyber-attack, it can be difficult to comprehend how vulnerable your business could be. However, as a specialist insurance broker, we are here to help you understand the digital risks your business is exposed to so that you can take the appropriate action.

We often hear from clients that they are unsure of the digital risk their business faces and therefore, we have outlined a couple below with advice from our expert team:

“We invest in IT security, so we don’t need Cyber insurance…”

  • Whilst investing in IT security is important, it is likely that your business will still be exposed to cyber risks as cyber threats are continually evolving to bypass these security measures.
  • People are the weakest link in your IT security chain. Most cyber-claims are as a result of an easily preventable human error.
  • Cyber insurance is a cost-effective way to get access to risk management tools including employee training programs, but it also provides you with an expert response team and covers all financial losses in responding to a cyber-attack.

“We don’t collect any sensitive data, so we don’t need Cyber insurance…”

  • Two of the most common cyber-claims are not related to privacy. Fund transfer fraud is often carried out by criminals using fraudulent emails to divert the transfer of funds from a legitimate account to their own.
  • Secondly, ransomware can cripple any organisation by freezing or destroying your business-critical computer systems.
  • Neither of these types of incidents would be considered a data breach however, both can cause severe financial damage and are covered under a Cyber policy.

“Cyber-attacks only affect big businesses. We’re too small to be a target…”

  • High profile cyber-attacks that have affected large organisations have raised awareness of the growing threat of cyber-crime through the media however, surveys conducted by cyber security organisations suggest that may small business owners are operating under a false sense of security because of this.
  • As larger organisations get serious about cyber security, small businesses are becoming increasingly attractive targets for cyber criminals – and the results are often devastating for small business owners.
  • Not only does insurance cover the costs involved in responding to a cyber-crisis, but it also provides you with instant access to a number of technical and legal experts who you may not have in-house.

“Our other insurance policies cover Cyber risks…”

  • While there may elements of cover within traditional insurance policies, it tends to be partial cover at best, falling very short of what is covered under a standalone Cyber policy.
  • Property insurance policies are designed to cover your bricks and mortar, not digital assets.
  • Crime policies rarely cover social engineering scams (without onerous terms and conditions) which are increasingly conducted by cyber criminals and result in a huge source of financial loss for businesses.
  • Generally, Professional Liability policies do not cover the first party costs associated with responding to a cyber event.
  • A standalone Cyber insurance policy provides you with access to dedicated cyber claims experts who are trained to get your business back up and running with minimal disruption and financial impact. Without a specialist team, it could take your business weeks or even months to return to business as normal.

We are here to help

With extensive experience in the digital risk’s businesses are exposed to, we are well placed to support and protect your business.

For more information on how your business can benefit from Cyber insurance, get in touch with our specialist, Jason Cohen:

JasonCohen@hamiltonleigh.com

Tags: ,
WordPress Image Lightbox Plugin