A cyber insurance policy typically covers notification costs associated with a privacy breach; business disruption costs caused by the breach; forensics costs to investigate a breach; malware attack costs; and loss of income due to customer churn and decreased productivity by employees, among more.
But buying cyber insurance in Alberta is easier said than done. The marketplace is over-saturated with options. And that makes it incredibly difficult for businesses to find a cyber insurance policy that fits their needs and budgets, especially when if they have no prior experience purchasing cyber insurance.
So, here are the five most common mistakes businesses need to avoid when buying cyber insurance in Alberta.
1. Failing to assess your risks properly
Hacking is not the only loss that organizations face. Things like negligence and employee errors can also impact data on a computer system. An effective risk assessment can keep your company from being blindsided by common cyber mishaps and help control your cyber insurance premium.
Besides, cyber insurance providers often decline claims if an organization doesn’t assess their risks properly, lacks monitoring systems, or fails to have an incident response plan in place.
2. Expecting general liability insurance to protect your cyber presence
Cyber policies are vastly different from general policies and will not cover your online presence by default. They are specific and targeted towards online threats such as hacking attacks or malware damage while general liability insurance protects your business property and premises, personal property, vehicles, and operations.
Cyber insurance policies protect your business and assets against the financial losses arising out of security breaches, malware, worms, ransomware attacks and other web-based attacks. That’s why they are so critical for small businesses and large corporations alike.
3. Investing in unnecessary coverage
Businesses don’t often have a clear picture of what they need in a cyber insurance policy. Sure, you know that you want your business to be protected and covered if your company is attacked. But do you really need coverage for all of those things that your IT guy told you he would take care of?
A cyber insurance policy must be extremely detailed to address all types of cyber threats and provide you with comprehensive coverage. But you don’t have to buy all the add-ons. A quick risk assessment will help you decide where you should put your money and make the best use of your budget.
4. Going for the lowest-priced policy
One of the biggest mistakes consumers make when investing in a cyber policy is opting for a low-priced policy that doesn’t adequately cover their needs.
As a business, you are always looking for more cost-effective ways to protect your online assets, but going for the lowest-priced policy to cut costs could mean overlooking critical coverage.
Besides, reducing your deductibles to lower the premiums is another mistake businesses make when buying a cyber insurance policy. But the truth is that the higher your deductibles, the more you save on your bottom line.
5. Not working with a qualified cyber insurance broker
Understanding complex insurance terminologies can be challenging for businesses especially if they are first-time buyers. But a broker can simplify the process of choosing the right cyber insurance policy for you.
Cyber insurance brokers have in-depth knowledge of different insurance products, which allows them to understand the terms and conditions mentioned in the policy better than those who are new to buying cyber insurance in Alberta.
They can also guide you throughout your search for a suitable solution and let you leverage their expertise to compare different cyber insurance policies based on all of your requirements.