Top 5 Myths About Cyber Insurance — Busted

Top 5 Myths About Cyber Insurance — Busted

Cyber threats are growing every year, yet many businesses still hesitate to purchase cyber liability insurance. Why? Often, it’s due to misconceptions that leave them dangerously exposed. Let’s clear the air.

Myth 1: “My business is too small to be targeted.”

Truth: Small and mid-sized businesses are the most targeted — precisely because they lack robust defenses.

Myth 2: “Our IT team handles cybersecurity.”

Truth: Even with great IT, accidents happen — like employee error, phishing clicks, or rogue vendors. Insurance covers the fallout.

Myth 3: “Cyber incidents aren’t that expensive.”

Truth: The average cost of a U.S. data breach is over $4 million. Even a small breach can lead to regulatory fines, lawsuits, and lost customers.

Myth 4: “General liability covers cyber incidents.”

Truth: It rarely does. Cyber insurance covers losses like data recovery, ransomware payments, and breach response that GL policies exclude.

Myth 5: “Cyber insurance is too expensive.”

Truth: Premiums are often a fraction of the cost of a breach — and carriers offer discounts for good cyber hygiene.

📌 Takeaway: Cyber insurance is essential protection, not a luxury. Don’t wait until it’s too late.