Cyber is one of the hottest topics in insurance at the moment but is still a relatively new insurance cover.
With more and more cyber attacks, many companies find themselves confused about how cyber insurance actually works and are sceptical about whether it makes sense for their business to purchase a policy.
Over the next few weeks we are sharing six of the most common misunderstandings that businesses tend to have about cyber insurance and how to overcome them.
“WE DON’T NEED CYBER INSURANCE. WE INVEST IN IT SECURITY…”
This might be the single most common objection to purchasing a cyber insurance policy.
Not purchasing a cyber policy because you have ‘good IT security’ is akin to suggesting that you don’t need theft cover on a property policy because you have high quality locks on your doors, or fire cover because you have a sprinkler system in place.
There is a big difference between vulnerability and risk. And while you may have invested heavily in IT security may be less vulnerable to certain types of cyber attack than an organisation that has invested very little, they still have a risk exposure. Cyber threats are rapidly evolving and there are a plethora of ways in which attackers can access networks. Even large corporations that spend vast amounts of money on IT security every year still get hit.
People are often the weakest link in an organisation’s IT security chain. According to IBM, 95% of successful cyber attacks and incidents are the result of human error.
Technology and training may reduce the likelihood of an employee accidentally clicking on a malicious link in an email, or from being tricked into transferring funds to a fraudster as part of a social engineering attack, but it can’t eliminate those risks completely. And no amount of investment in IT security can stop employees from leaving their laptops on a train or a rogue employee from releasing sensitive data on the internet.
For more information about cyber liability insurance please contact Yutree Insurance on 01638 660651.