Overcoming Objections to Cyber Insurance
Jan 17, 2024
by Catherine France
While cyber insurance can provide valuable protection against various cyber threats, business owners in the UK might raise several objections against purchasing cyber insurance. Here is a guideline to overcoming objections in the context of selling cyber insurance involves addressing the concerns and doubts potential clients may have regarding the product. It's essential for business owners to carefully evaluate their unique circumstances, the nature of their business, and the evolving cybersecurity landscape when considering whether to invest in cyber insurance.
Objection | Detail | Information to support insurance |
|---|---|---|
Cost concerns | Cyber insurance premiums can be relatively high, and some business owners may find it challenging to allocate funds for insurance when facing other financial priorities | Conduct a thorough risk assessment to demonstrate the potential financial impact of a cyber incident. Highlight that the cost of recovery without insurance could be significantly higher than the premiums |
Perceived low risk | Some business owners may believe that their industry or business size doesn't make them a significant target for cyberattacks, leading them to perceive the risk as low | Share real-world examples or case studies where cyber insurance played a crucial role in mitigating losses and helping businesses recover after a cyberattack. Concrete examples can make the benefits more tangible. Ask, could you afford not to have access to your network, billing systems, email, and phone at any time? |
Policy Understanding | Cyber insurance policies can be complex, and business owners may find it challenging to understand the coverage details, exclusions, and limitations. The complexity could deter them from investing in something they don't fully comprehend | Provide clear and transparent communication about the coverage, exclusions, and limitations. Work closely with the business owner to ensure they fully understand the policy and its benefits. Provide relevant information about cyber insurance and how it addresses the specific concerns raised. Highlight the coverage, risk mitigation, and financial protection cyber insurance offers in the event of a cyber incident. |
Inadequate Coverage | Business owners might be concerned about the potential exclusions or gaps in coverage that could leave them vulnerable to certain types of cyber threats | Offer customisable policies that address specific risks faced by the business. Work with the client to create a policy that aligns with their unique needs and potential cyber threats |
Risk Mitigation Measures | Some business owners may prefer to invest in cybersecurity measures and risk mitigation strategies directly and see insurance as an alternative to that investment | Emphasise that cyber insurance is not a replacement for cybersecurity measures but complements them. Highlight that insurance can provide an additional layer of protection beyond preventative measures |
Lack of past incidents | If a business has not experienced any significant cyber incidents in the past, the owner might question the necessity of cyber insurance, assuming that they are not likely to face such issues in the future | Stress the importance of taking a proactive approach to cybersecurity, highlighting that insurance is a safety net for unforeseen events, even if historical incidents are limited |
By addressing these objections with clear and compelling arguments, businesses can make a more informed decision about the importance of cyber insurance in their overall risk management strategy. It's crucial for insurance providers to build trust, provide education, and work collaboratively with businesses to tailor solutions that meet their specific needs.
About Infoprotect UK
Infoprotect helps businesses achieve cybersecurity compliance, maturity and customer satisfaction.
We also have a symbiotic relationship with Insurance Brokers to provide effective “cyber risk management” for their clients, which is critical for organisations of all sizes and types as cyber threats continue to evolve and become more sophisticated. It can help prevent data breaches, reduce the impact of cyber-attacks, and protect an organisation’s reputation and financial stability.
Our agile, personalised human approach differentiates us. We deliver business value to our clients through our commitment and dedication to service delivery.
Our Cyber Assess, Cyber GRC and Cyber Protect solutions are industry-leading cybersecurity services.