Now more than ever, businesses large and small are operating online or storing potentially valuable information about themselves, employees, clients, and customers in virtual spaces. Matching this steady uptick, however, is the number of wrongdoers who hack into systems worldwide to gain sensitive personal and financial information about their targets.
Cyber liability insurance may or may not be something you’re already familiar with, but it can be an important asset to protect your company from making headlines as the latest source of a data breach. To help you better understand this type of insurance, however, let’s examine four key myths people tend to believe about it.
Cyber Liability Insurance Is for Much Larger Companies
You may get the impression from major data breaches like Capital One’s in 2019 or Equifax’s in 2017 that this only happens to the big fish in the pond. Wrong. Any business is susceptible to a cyber attack that steals important data, and you may not hear about it happening to smaller businesses like yours for two reasons: 1) It may not be a big enough breach to garner media attention; 2) No small business owner in their right mind would seek that kind of attention. Complicating matters, smaller companies may even be targeted because news about attacks against them is relatively infrequent or localized.
My IT Security Has Everything Covered
The most common reason why business owners forego cyber liability insurance may also be their biggest gamble. Having IT security in place is crucial for any company, but no plan is foolproof or does any good if someone finds a way to pry in. Business owners might believe they don’t need cyber liability insurance because they have a security plan in place, but they should think again.
Consider the following hypothetical statements:
- “I don’t need fire insurance because I bought a fire extinguisher.”
- “I don’t need car insurance because I drive carefully.”
- “I don’t need flood insurance because my city is surrounded by levees.”
- “I don’t need health insurance because I eat healthily and exercise.”
Do these scenarios sound silly, unreasonable, or unwise? The problem with all of them is that a false sense of security is overriding an important decision to purchase perfectly reasonable insurance. The levees failed in New Orleans, after all, and so too can the virtual ones around your company’s digital assets.
We Don’t Keep Any Sensitive Data Online
If you think nothing bad can happen because you don’t have information anyone would want stored on your servers, think again. Cyber criminals are as crafty as they are corrupt. Some may be able to spoof your company’s email addresses or phone numbers and make it appear as if you are reaching out to other people. By doing this, these fraudsters can potentially get sensitive information and even payment from unwitting clients or customers who will turn around and blame you for not having stronger security measures.
Finding the Right Cyber Liability Insurance Is Hard
Getting the right cyber liability insurance policy from the right provider can be as easy as working with a broker. At Insurance Specialists, Inc., an agent can walk you through your insurance needs to tailor a policy that can plan for any contingency. If you’re aware of holes in your IT security plan that could present problems in the future, we can help you find a policy that can safeguard your company should an incident occur.
Reach out to Insurance Specialists, Inc. online or by calling (888) 451-0883 for help.