Cybercriminals are increasingly targeting small businesses, with alarming statistics showing that around 63% of them have experienced a cyber-attack, and 58% have faced actual breaches. The resulting costs can be devastating, leading to the rapid growth of cyber liability insurance, covering expenses such as legal fees, ransomware demands, data restoration, customer notifications, and more. However, many business owners are unaware of a crucial aspect that could jeopardize their coverage – the need for comprehensive cyber protections.
The Importance of Cyber Liability Insurance
Safeguarding your business against cyber threats is critical to protect your hard-earned assets. Cyber liability insurance can provide a financial safety net, covering various expenses incurred during and after a cyber-attack, ensuring your business’s survival and reputation.
The Caveat: Comprehensive Cyber Protections
While having cyber liability insurance is essential, obtaining coverage requires much more than mere paperwork. Insurance companies expect businesses to implement robust cyber protections to minimize the risk and financial impact of a cyber-attack. This means taking proactive steps to safeguard your network, data, and systems against potential threats.
False Sense of Protection
Many business owners mistakenly believe that simply acknowledging the presence of cyber protections in their insurance application is sufficient. They assume their IT company or personnel will handle everything according to the policy’s requirements. However, this is where the problem arises. Without proper oversight, there is a risk of misrepresentation and false statements, leading to coverage denial and policy rescinding.
Verifying Compliance with Cybersecurity Standards
To avoid coverage denial, it is essential to work closely with your IT company or personnel. They need to ensure 100% compliance with the security standards, protocols, and protections declared in your insurance application. In case of a breach, the insurance provider will conduct a thorough investigation, requiring tangible evidence that you had the necessary preventative measures in place.
The Way Forward
If you currently have cyber liability insurance, it is crucial to revisit your application with your IT company or personnel to confirm full compliance. Don’t assume that they are automatically taking care of everything. It’s your responsibility to ensure that the agreed-upon measures are genuinely in place.
Seek Professional Assistance
If you have any concerns or questions about your coverage, it’s wise to seek guidance from an insurance agent or broker. They can help you verify your compliance with the required cyber protections and provide support throughout the claims process.
Free Cyber Security Risk Assessment
Additionally, consider scheduling a FREE Cybersecurity Risk Assessment to evaluate your business’s security preparedness against ransomware and cyber-attacks. Taking proactive steps now can save you from potential insurance denial and protect your business from the devastating consequences of cyber incidents.
Don’t leave your business’s future to chance. Be proactive in securing comprehensive cyber protections and ensuring full compliance with your cyber liability insurance. Safeguard your assets and reputation from cyber threats today!
