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Despite growing digital risks across the UK and the fact that cyber-attacks are now among the most significant threats facing modern organisations, still many businesses hesitate to purchase cyber insurance. 

Here are seven common cyber insurance myths, with some facts that dispel them.

1. “We’re too small to be a target.”

Cyber threats are no longer limited to large corporations. From phishing scams to ransomware attacks, businesses of all sizes face daily risks.

Cyber criminals often precisely target small and medium businesses because they typically have less sophisticated cyber-security systems. And on some occasions, small businesses can be targeted as part of a strategy to infiltrate larger companies' digital systems.

2. “Our IT security is strong enough.”

No system is infallible. Human error, insider threats or really sophisticated cyber-attacks can bypass even the best controls. 

Cyber insurance provides a financial safety net when technical safeguards alone are not enough, and complements your defences by covering costs if a breach does occur. 

3. “Cyber insurance only covers data breaches.”

Comprehensive cyber insurance policies usually extend well beyond lost data. Cover often includes business interruption, system restoration, ransom demands, reputational management, legal defence and regulatory investigations.  Just contact the team at Prizm if you’d like to see what your business could be covered for to protect it from the perils of cyber-crime. 

4. “It’s too expensive.”

Compared to dealing with the aftermath of a cyber-attack, premiums are relatively modest – and for many, cyber insurance is a cost-saving investment. 

Whilst premiums vary by organisation, the average cost of a breach (when you factor in downtime, lost revenue, remediation and post-attack recovery) might be hundreds of thousands of pounds. Cyber insurance is often a fraction of this, making it a prudent investment.  And it costs nothing to get a quote – just give Prizm Solutions a call, we’d be happy to help. 

5. “We already have general liability insurance.”

Standard business or liability insurance often excludes cyber events. That’s why you need cyber insurance, as it’s specifically designed to address digital risks and their complex consequences.  If you’d like one of our experienced brokers to take a look at your current business insurance to see if you’re already covered, just get in touch.

6. “Claims are rarely paid.”

Reputable insurers regularly pay valid claims. Problems only arise when businesses misunderstand what their policy includes. That’s why it’s always beneficial to use an experienced broker like Prizm Solutions. We understand cyber insurance, so can ask the right questions to provide you with the right cyber cover for your business needs. 

7. “It’s only for tech companies.”

This is so not true, as cyber insurance is crucial for any business in today’s digital world. 

If you use email, store customer information and rely on online digital operations, you face a cyber risk every single day. Retailers, manufacturers and professional services firms are just as vulnerable as tech companies, which is why every business needs cyber insurance to keep business safe. 

If you’d like to learn more about how cyber insurance helped one of our clients, just click this link. 

Now these seven common myths have been busted, give Prizm Solutions a call. We can compare options and find the best cyber insurance policy for your business, so you have peace of mind that your company has this essential layer of extra business protection. 

And if you haven’t undertaken any cyber awareness training as a business, check out the training and resources offered by our sister company Maximity.