Many companies think that cyber criminals only target large multinationals or organisations with sensitive data. The reality is quite different: most attacks are not targeted, but opportunistic. By means of phishing campaigns, hackers try to gain access wherever they can, and the more email addresses they target, the greater the chance of someone clicking on the link.
What’s more, smaller companies are often unwittingly involved in larger attacks, for example as a gateway to a bigger player in the supply chain (supply chain attacks). So even if your company isn’t the primary target, you can still end up being a victim. Unfortunately, the idea that because you’re not a hospital or a major financial player, your data isn’t valuable to cyber criminals is wishful thinking.
Our advice: Don’t treat cyber risks as a distant concern. Every organisation with digital processes is at risk, which is why proper preparation – and insurance – are crucial.
Some companies are convinced that they can simply switch over to doing things on paper in the event of a cyber incident. But the digitisation that’s taken place in recent years often means that this is no longer realistic. What if your digital data isn’t accessible? What if you can no longer send invoices and a cash flow problem arises? Or what if your logistics provider is no longer able to deliver? A cyber incident doesn’t just affect your IT department: it can create a cascade effect, bringing your business operations to a partial or complete standstill.
It’s at such times that your business interruption cover is there for you. And make no mistake: many companies are still far from fully operational even hours after an incident. Sometimes it can take days or even weeks. Of course, you’ll also have the support of the incident response team from the outset.
Our advice: Think beyond the impact purely in terms of IT. A cyber incident often also affects communications, legal obligations, reputation and cash flow. Cyber insurance offers support in all these areas.
A resilient IT infrastructure is an excellent first step, but it’s no guarantee that you’ll never have an incident. Even in the cloud, it’s your responsibility to have the right configuration. Human error, such as clicking on a phishing email, is always possible too.
IT partners can also make mistakes or become overwhelmed during a large-scale incident. They tend to focus purely on the technical side, whereas cyber insurance also offers legal, communication and organisational support.
Although IT teams and external partners play a crucial role in securing systems, maintaining cyber security isn’t up to them alone. It’s a shared responsibility. Every employee, from administration to management, plays a role in preventing incidents. Cyber insurance recognises this shared responsibility and offers support on multiple fronts: from technical intervention to legal assistance, communication advice and crisis management. All of this makes your organisation stronger.
Our advice: Think of cyber insurance as an essential supplement to your IT security – in the same way that fire insurance is no substitute for a fire alarm, but is still a critical component.
The cost of cyber insurance may seem significant at first glance, but it rarely outweighs the potential damage in the event of an incident. You’re not just buying financial cover, but access to specialist incident response services. In other words, cyber insurance doesn’t just provide financial protection: it offers peace of mind and direct support when needed.
Misunderstandings about cover sometimes arise in connection with forms of cyber fraud that don’t involve a breach of the IT system. These include situations where criminals try to trick employees by email or phone into making a payment. It’s not your system that they hack, but your thought processes. Such attacks don't fall within the scope of typical cyber insurance, but are covered by separate fraud insurance policies. A growing number of insurers these days offer supplementary policies that also cover these forms of digital manipulation. This means that your company is better protected against a wide range of cyber risks.
Our advice: Don’t just view the insurance premium as a cost: see it as an investment in business continuity. And be sure to have your existing policies reviewed for any gaps or overlaps.
