Cyber insurance used to be optional. Now, it’s just a cost of doing business. But there’s a catch: most small businesses either don’t have cyber coverage at all, or they think they do—when in reality, their policy isn’t going to help them much in the event of a breach.
This post is here to help you understand what questions to ask, what coverage to look for, and how to make sure your business is actually protected—not just checking a box.
The Reality: Most Policies Are Not What You Think
When I talk to business owners around Central NY, I usually hear one of two things:
- “We don’t have cyber insurance.”
- “Yeah, I think we have that as part of our general policy.”
Unfortunately, that second answer is where a lot of the risk hides. Many general liability policies either exclude cyber entirely, or only include it as a small rider that doesn’t go very far. Even when a standalone policy is in place, it’s often outdated, too limited, or full of exclusions that kick in exactly when you need it most.
The Big Misconception: “I Thought I Was Covered”
One of the most common misunderstandings is the belief that cyber insurance will automatically cover any kind of breach or incident. The reality? Most carriers require specific cybersecurity controls to be in place—and if they’re not, your claim can be denied.
A real-world example: one business thought they had multi-factor authentication (MFA) enabled across the board. But it was disabled for one user, and that was the user the attacker got in through. Their coverage was void.
Small details matter. If you’re not 100% certain your protections are in place—and actually enforced—you could be exposed.
What to Ask Your Insurance Agent
When it’s time to talk to your insurance provider, don’t just ask if you “have cyber.” That’s too vague. Instead, start by asking:
- “Who’s your cyber expert?”
If your agent doesn’t hesitate and can confidently walk you through your coverage, that’s a great sign. But if the answer sounds more like, “Um, I guess that’s me…?”—it might be time to look for a broker who specializes in this. - “What specific events are covered—and what would cause a denial?”
Understand what triggers a payout and what technical requirements are assumed. - “Are there minimum cybersecurity standards I’m supposed to meet?”
Ask for a checklist. See what the fine print expects you to have in place.
Why You Should Work With a Specialist
Most insurance companies have a conflict of interest—they don’t want to pay out if they don’t have to. That’s why it’s smart to work with an independent insurance broker and a cybersecurity expert who can help you audit your coverage and make sure it aligns with your actual risk.
Cyber insurance isn’t just a product—it’s part of a larger risk strategy. If your IT and insurance aren’t on the same page, you’re leaving the door open.
What You Should Do Right Now
If your business uses the internet (and let’s be honest—you do), then cyber insurance is something you need to take seriously. Here’s how to start:
- Get your current policy reviewed
Have someone audit your coverage. Understand what’s included, what’s not, and what assumptions the carrier is making about your cybersecurity posture. - Schedule a cybersecurity risk assessment
Whether it’s with your internal IT team or a company like ours, this will show you what your actual exposure is—and what kind of policy you should be looking for. - Talk to someone who doesn’t want to sell you anything
We offer a free 15-minute consultation. No sales pitch—just straight answers. There’s a lot of bad info out there, and our job is to help you cut through it.
Final Thought
If you’re reachable, you’re breachable. Cyber threats aren’t just for big businesses anymore, and waiting until after something happens is the worst possible time to find out what your policy doesn’t cover.
Cyber insurance only works if you understand it. Let’s make sure you do.