3 Myths About Cyber Risk Insurance

As companies become increasingly connected, so too does the exposure of their data online. Cyber insurance is certainly one way to cover yourself financially after an incident, but have you thought about the various impacts an attack can have on your company?

• Insurance cannot guarantee the recovery of lost data
• Lost data essential to business continuity can cause reputational harm, loss of customers, and more
• It is not always possible to recreate the data
• It can result in lost productivity and increased stress for the team and employees
• Which in turn can result in a drop in quality or a complete halt of the services provided

Cyber insurance only covers part of the damage. There are several myths about it that can do more harm than good in the event of an incident.

To help you make informed decisions, we debunk them for you:****

Myth #1: All I need to protect my company from cyberattacks is a cyber insurance policy

Not quite. To compare it to auto insurance, you are covered for theft, but if you leave your car doors unlocked, the risk of theft increases considerably. Well, it is the same with cyber insurance. This is a fairly obvious example, but because of the complexity of cyber insurance, it is important to read the conditions of your contract to make sure your environment meets the security criteria stated in your policy. Otherwise, you could lose your eligibility for reimbursement from the insurer.

If you are unable to prove that your environment complies with the insurance policy when you file a claim, you are unlikely to receive your reimbursement.

Myth #2: I don't need cyber insurance since I have cybersecurity solutions in place.

The opposite of Myth #1 is also false. It is true that cybersecurity solutions in place greatly help your defense and risk prevention, but they cannot make you 100% immune. Even if your IT service provider does its best to identify and fix vulnerabilities, staying on top of every risk is a challenge. On top of that, human error plays a big role. You could therefore have an ironclad environment, but the users of that environment are a system vulnerability in themselves.

You therefore have to be realistic and know that there will always be a certain percentage of risk, which is why it is always good to have a backup plan.

Myth #3: Getting cyber insurance is easy.

The more technology advances, the more cybersecurity incidents there are. Small and mid-sized businesses are often the most vulnerable to these attacks because they are not necessarily equipped to protect themselves. Since the risk of attacks is very high, many cyber insurance providers are reluctant to offer coverage.

As a result, the prices of these policies are skyrocketing, and it is becoming increasingly difficult for businesses to obtain such insurance.

Working hand in hand for guaranteed success

• It is recommended to contact your IT service provider to confirm that you comply with your insurance policy in order to ensure coverage in the event of an incident
• Putting cybersecurity solutions in place can save you money on your insurance and prevent cyberattacks
• At renewal time, reviewing your insurance policy to account for the new security measures put in place by your IT provider can save you money
• Ask your IT provider what you can put in place to improve your security posture

Do not hesitate to contact us to see how MMO Techno can support you in protecting your company effectively. We can advise you and help you put in place what is needed to protect your environment from looming threats.