Cyber threats are no longer just a big-business problem; small and mid-sized organizations are just as vulnerable, and the financial consequences can be devastating. That’s why many companies are turning to cyber insurance as a safety net. But what does a policy really cover, and where do businesses sometimes get caught off guard?
A standard cyber insurance policy often includes:
Data breach response – Covering legal fees, notification costs, and credit monitoring for affected customers.
Business interruption – Helping recover lost income if operations are forced to pause due to an attack.
Cyber extortion – Protection against ransomware demands.
Liability coverage – If your business is held responsible for a third-party data loss or privacy violation.
However, there are common gaps leaders need to watch for. Some policies may exclude coverage for outdated systems, employee negligence, or unpatched software vulnerabilities. Others might not cover regulatory fines, reputational damage, or future profit losses caused by customer churn after a breach.
The bottom line? Cyber insurance can provide important protection, but it’s not a replacement for strong cybersecurity practices. Businesses that combine proactive IT management with the right insurance coverage are far more resilient when an incident occurs.
Want to know if your business is properly covered? SYAND can help you review your cyber readiness and align your IT with the right safeguards.
