The days of businesses thriving without an online presence are largely over. Particularly in the wake of the upending caused by the 2020 COVID-19 pandemic, businesses without websites are simply missing out on a wider audience. With that fact in mind, many companies are launching their own blogs, online stores, and sites to stake their claim on the internet.
Unfortunately, success brings predators, and the online space is full of them. From ransomware to hacking, data breaches are becoming more common than ever before. Just as it's critical that you have an online presence, it's imperative that you protect your business on the internet.
While you might have a powerful IT team at your back with all the safety protocols necessary to defend your business, it's always possible that cyber attacks steal valuable information; that's where cyber insurance comes into play.
Whether you are considering investing in cyber insurance but you're still on the fence, or you want to clear up misconceptions before you dive in, here is the truth behind the five biggest cyber insurance myths.
1. Cyber Insurance isn't Necessary for Small Businesses
Your web presence and store might only see meager traffic and sales, so you might think, "I don't need to worry about cyber insurance." The reality is that cybercriminals will attack anyone they see as both vulnerable and profitable to exploit. Any business can be targeted, regardless of size and the fallout is the same - angry customers who have had their credit information or social security numbers stolen by a malicious entity. In fact, it could be said that the fallout is worse as a small company because the litigation is the same, you just have fewer resources to handle it all than a Fortune 500 giant.
2. Other Lines of Insurance Will Cover Cyber Risk
Insurance is a tricky business, and often only covers very explicit specific risks. For instance, homeowners insurance often requires special riders for flood, mold, and earthquake damage - cyber attack incidence is the same for businesses. If your business insurance does cover cyber attacks, it's still highly unlikely that their specialists are trained to handle the specifics of a cyber attack and data breach. Cyber insurance provides the exact coverage you need and customer support to navigate the process of claims.
3. Cyber Security and Cyber Insurance are the Same Concepts
Go ask your IT person what will happen in the wake of a catastrophic data breach; a shrug is probably the best answer you can get. The fact is that cyber security is there to prevent data loss from an attack - they defend you against all the malicious criminals out there trying to steal from you.
Cyber insurance, on the other hand, is what helps during the fallout when a data breach occurs. You could have the most diligent cyber security system and team in the world, but it just takes one misclick or cloud misconfiguration to allow a criminal to get through. That's why you have cyber insurance - to handle what happens when that eventuality becomes reality.
4. Cyber Insurance is All You Need to Protect Your Business Online
As we mentioned in the previous section, protecting your business is about defense and mitigation. Cyber insurance will help after things go south, but a robust cyber security program will help make that situation less likely to happen. Additionally, train your staff on how to avoid mistakes and missteps that can put your business at risk - every layer of support and defense is critically important.
5. Cyber Insurance is Too Expensive
The first consideration is that you can't afford cyber insurance - it is overwhelmingly not cost-prohibitive. The second consideration is whether you can afford not to have cyber insurance. In the event of a data breach, the damage to your finances could be catastrophic. Just like skimping on homeowners insurance and then having a tree fall on your house, the cost of avoiding cyber insurance far outweighs the premiums.
Cyber Insurance is Critical for Any Company
Starting a business - whether fully online or simply with an online presence - is full of excitement, potential, and risks. Just as you'd insure a storefront against accidents, burglary, or vandalism, you need to protect your online business with insurance as well. Cyber threats are more common than ever and pose a severe risk to the well-being of your company.
Using cybersecurity training for your employees as well as a potent security network will help prevent most, if not all, malicious digital attacks. These measures will stop data breaches the overwhelming majority of the time, but if one does occur, you can rest safely in the knowledge that cyber insurance will help you deal with the fallout.
Your company and customer's data is precious and valuable, so it needs to be protected, but so does your financial well-being. Don't let these persistent insurance myths dissuade you from protecting your business with cyber insurance.