Even as cyber attacks are becoming increasingly frequent, damaging and sophisticated, many businesses still do not purchase cyber insurance. Here are five common reasons why business leaders believe this coverage to be unnecessary - and why they are actually wrong.
1 - OUR BUSINESS IS TOO SMALL.
It's a myth that small businesses are not targets for cybercriminals. In fact, as small businesses are more vulnerable due to lack of cybersecurity resources, they are often easy targets.
2 - WE ARE NOT THAT RELIANT ON TECHNOLOGY.
Many smaller businesses prioritize protecting their physical assets and often do not understand just how dependant on technology they are. The vast majority of businesses use email and online systems to manage finance, payroll, product orders, inventories, etc. Emails and texts are the most used entry points for cyber hackers. Additionally, replacing physical items is significantly easier than recovering your business or client data.
3 - WE ALREADY PAY FOR SOFTWARE PROTECTION.
Anti-virus protection only goes so far and should be just one small part of an overall cybersecurity strategy. Cyber breaches are most commonly caused by human error (i.e. falling victim to email phishing scams).
4 - OUR BUSINESS INSURANCE POLICY ALREADY COVERS US.
Most expenses that arise following a cyber attack aren't covered by your Commercial General Liability policy. And they can add up fast – the average cost of a data breach in Canada is now $7 million according to the latest IBM Cost of a Data Breach report. These costs could include legal expenses from customers suing, loss of business income, damage to systems and networks and recovering data, crisis management, etc.
5 - CYBER INSURANCE IS TOO EXPENSIVE.
When even a moderate breach can mean bankruptcy for many companies, it is important for business leaders to consider whether they can truly afford to forego cyber insurance.
Contact one of our dedicated, experienced Risk Advisors for professional, personalized on your cyber insurance options.
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