Cyber insurance is an invaluable tool in your risk management arsenal. Think of it as one of the many weapons you have against cyber threats. However, there’s a widespread misconception that having cyber insurance is enough. The truth is, without a comprehensive cybersecurity strategy, your insurance can offer only limited protection.
In this article, we’ll help you understand why cyber insurance should be seen as a safety net rather than a replacement for strong security.
Understanding the Limits of Cyber Insurance
In today’s business landscape, cyber insurance is a must. However, having insurance doesn’t guarantee a payout. Here are a few things that cyber insurance can’t help you with:
Business Interruption
Your cyber insurance policy can never fully cover the cost of lost productivity due to a cyberattack. The payouts, in most cases, would be partial and won’t be enough for you to recover from the business interruption.
Reputation Damage
Cyber insurance can’t help you win back customer trust. It would take a lot of work to repair your organization’s reputation.
Evolving Threats
Cyber threats are constantly evolving, and your insurance policy might not be able to offer a payout against new tactics.
Social Engineering Attacks
Cybercriminals often trick unsuspecting victims through social engineering attacks. If your business suffers losses due to a social engineering attack, like a phishing scam, you might not be covered.
Insider Threats
Losses resulting from an internal risk are rarely covered by insurance providers. If the breach occurs because of a threat within your organization, your policy provider may not entertain the claim.
