As businesses strive for greater efficiencies we continue to increase our reliance on technology. Subsequently, cybercrimes continue to rise, making the most out of our online presence. A 2023 survey highlighted that almost half of respondents experienced at least one cybercrime in the 12 months prior to the survey and almost half of all victims recorded that they were prey to more than one type of cybercrime.

Keeping your business protected from cyber attacks has become mandatory for business owners. Cyber insurance plays a vital role in this protection, providing financial security and peace of mind in the event of a cyber-related incident.

A cyber attack could cause your business a considerable financial impact, serious loss of information, or business downtime, disrupting your overall business. Over the past 5 years, 21 percent of cyber claims were attributed to theft of funds, making it the largest portion among other cyber crimes. Cyber insurance can be beneficial as it acts as a safety net for your business and provides coverage for financial losses your company might incur.

Common Misconceptions About Cyber Insurance

There are misconceptions that can hamper your decision-making process:

  1. Small businesses do not need cyber insurance
    Most small businesses think that they do not require insurance due to its size. However, small and medium sized enterprises (SMEs) have become a target for cybercriminals, especially if it has minimal cybersecurity. Although you can adopt methods to strengthen the cybersecurity of your company, what it does not guarantee is that you will be free from a cyberattack altogether. Cyber insurance can minimise the potentially significant loss your business would incur if it were subject to a cyberattack.
  2. We do not require cyber insurance as our business has IT security
    Although having IT security is necessary as it safeguards your personal information and protects it from all sorts of malware, it does not offer absolute protection from all your data. In fact, most cyber insurance policies require that you have security in place to protect you from the wide range of cyber attacks as a risk management strategy. As technology advances rapidly, it becomes increasingly challenging to keep pace with the schemes of cybercriminals, which explains why it is essential to keep your personal information protected with cyber insurance.
  3. Cyber insurance is not needed as we have backup copies
    While it is vital to store backup copies of data and personal information, what it cannot do is guarantee that your business is safe from a cyber attack. Cyber insurance, however, can offer you more than just data recovery. On top of reimbursement and data recovery, it provides cover for ransomware and many other forms of attacks that do not just target your data. The correct insurance policy gives you the reassurance that your business is protected and can be recovered if a cyber attack were to occur.

Assessing Cyber Risks and Coverage Needs

While the market offers premium cyber insurance plans to secure your data in the best way possible, understanding your business by assessing its cyber risks and coverage needs is key. Cyber security risk assessments are a great way to recognise key assets of your business that might be a target to cyber attacks. As such, your policies should be solely dependent on the requirements of your business. Most policies include cyber incident response, cyber crimes, system damage & business interruption, network security & privacy liability, media liability, technology errors & omissions and court attendance costs.

Safeguard Your Digital Assets Today

At PSC Insurance Brokers, we offer cyber insurance policies to safeguard your business in the event of an attack. We provide solutions to commercial and small-to-medium sized businesses across the country, prioritising the safety of your operations and assets. If your business requires assistance with any of the following, we are more than happy to provide you with the service that you need.

Contact us today to review your insurance needs. Our team of insurance specialists are here to provide guidance that aligns with your business goals and risks.