Cyber insurance is a hot topic for businesses today, and there are a lot of myths surrounding it due to its complexity. The increase in cyber risks and the need to protect against them has led to a rapid rise in companies buying cyber insurance policies. However, cyber insurance needs to be clearer on what it covers.
At Marathon Insurance Group, we understand that although digital platforms are invaluable, they can also be a target for cybercriminals. When you choose our services, however, we will protect your hard work from the most damaging risks of cybercrime. We are dedicated to creating a tailor-made cyber insurance policy, equipping you with the coverage you need.
What is cyber insurance?
Cyber insurance is an insurance policy designed to protect your business from damage caused by cybercrimes. These crimes include viruses and spyware, which can disrupt your operations by destroying files or capturing data and passwords.
Cyber insurance covers repairing or replacing equipment damaged by cybercrime and any costs associated with hiring a third party to investigate the incident. It is a great way to help you manage cyber-attack risks and avoid vulnerabilities in your systems and databases.
Before shopping around for coverage options, you must understand some common misconceptions about cyber insurance. This way, you will be armed with all the necessary information before deciding which policy will suit your business needs.
Common Cyber Insurance Myths
Cyber Insurance is Only for Large Corporations or Government Agencies
Large businesses and government agencies purchase most cyber insurance policies. However, a wide range of coverage is available for individuals. Many small businesses also purchase cyber insurance because they want to protect themselves against potential losses in case their business suffers from a cyber attack.
For example, suppose hackers have targeted your company, and you have no other way to combat the attack. In that case, you can use cyber insurance to help cover the costs of repairing any damage to your network or system. This coverage could include paying an IT consultant to help you identify any damage caused by the attack and fix it before it worsens. It may also cost several thousand dollars per hour, depending on how severely your company’s network is affected by these attacks.
You can qualify for this type of insurance if you are a small corporation or have an established online business.
With a Robust Cybersecurity System, You Do Not Need Cyber Insurance
Cyber insurance is not a replacement for good cybersecurity practices and risk management. A robust cybersecurity system differs from cyber insurance. It is easy to think your company’s cyber security is good enough to protect them from hackers. However, they will not be covered under a cyber insurance policy if they find themselves in a breach.
The effectiveness of your cybersecurity system depends on the weakest point in its chain. If a hacker discovers and exploits a single vulnerability in your network, all of the people you’ve spent time developing this strong security for could be vulnerable to hackers. Therefore, it is necessary to purchase insurance coverage regardless of whether or not your company has the strongest cybersecurity systems.
General Liability Policy Will Cover Cyber Risks
A general liability policy provides coverage for damages caused by bodily injury and property damage arising from an unintentional act, including those related to computer hacking incidents. These damages could include repairing or replacing damaged property, legal fees related to defending a lawsuit, or medical expenses incurred due to an accident caused by a cyber attack.
However, most cyber claims are handled through a separate cyber insurance policy that provides coverage for losses relating to computer hacking incidents. This type of policy typically has higher limits than a standard general liability policy. It is more likely to provide coverage for losses relating to cyber-attacks.
No Amount of Cyber Insurance Necessarily Protects Businesses From Cyber Attacks
While it is true that clients who invest heavily in IT security may be less vulnerable to certain types of cyber attacks than organizations that invest very little, they still run the risk of exposure. Cyber threats rapidly evolve, and cyber attackers find new ways to access networks daily. However, you will feel safer with a great cyber security system and coverage. Cyber insurance can also help you recover from a data breach.
Cyber insurance is an excellent investment for your company. It can help reduce risk and protect you from cyber threats that could ruin your company’s reputation or operations. Many businesses are unaware of the dangers of data theft. Hackers can break into your network in various ways and steal information or access sensitive data, such as customer records, which can result in significant financial losses for businesses without coverage.
Get Protection for Your Business Today!
Cyber insurance is an integral part of any business cybersecurity strategy. It protects you against the risks of data breaches and other cyber attacks that can cost your company millions of dollars in lost revenue.
At Marathon Insurance Group, our team of insurance brokers is available to assess the cybersecurity risks you could expose to your business. We will create a specialized cyber insurance policy to fit your needs and provide superior coverage at the lowest rates possible, so you can focus on running your business without worrying about cyber risks.