Cyber Risk Video #3 – Small business myths

In my prior videos, I’ve discussed in broad terms what cyber insurance is and the startling fact that less than 30% of small and medium-sized businesses are buying cyber coverage. Today I want to dispel some other myths as to why this important coverage isn’t being purchased.

a. It won’t happen to me. Hackers aren’t interested in my data.

This is tremendously FALSE

Small businesses are exactly the types of victims that hackers are targeting. Small and medium-sized businesses don’t have the resources, knowledge or expertise to have failsafe data security systems. Sure you may have a firewall and antivirus protection, but a small company doesn’t have the fortress mentality of a large corporate firm.

On top of that most small firms don’t have the ongoing training resources necessary to prevent that employee from clicking what looks like a legit link but is actually a ransomware virus. Then what? You’re basically screwed.

b. I have a lot of insurance – cyber must be covered in all the policies I have, like my umbrella policy.

I spoke about this previously, but sorry, you other policies don’t cover the risks of cyber. As a footnote, you can endorse some cyber cover into a BOP policy, but the scope of that protection is limited and I don’t recommend it. Get a real cyber policy

c. My IT/Managed Services Company takes care of this for me.

I’ve heard this one too often.

But no, your IT managed services company is helping to defend you against hacks and infiltrations, but typically their contracts of services will specifically exclude liability associated with a hacking or cyber event.

The basic fact is that you need to control your own cyber risk protection and that’s done through a cyber policy.

d. Cyber policies have too many exclusions or it costs too much. It’s not worth it.

Every policy you buy has exclusions, this is true. But the scope of what a cyber policy does cover is very broad. Going without coverage because there are limits or exclusions is silly, you don’t apply that mentality to a property policy, do you?
With regard to the cost, I can’t believe how cheap cyber insurance is. It’s not an exaggeration when we say that it’s not a question of IF you’ll suffer a cyber event, but WHEN you’ll get hit. In my opinion, cyber is dirt cheap right now based on the potential you will get hit and the costs associated to remediate a claim.

From my experience, cyber premiums typically account for 4 to 12 percent of a client’s total insurance spend. To me, that’s well worth it when you consider the pre-breach, post-breach services as well as the actual insurance you do get.

Want more info see the link posted below, which as additional resources and an opportunity to obtain a cyber premium indications.


👦 Gordon Coyle is the CEO and Senior Risk Architect of The Coyle Group, a New York based insurance brokerage and risk consulting firm, focused exclusively on the business insurance market.
🏡To learn more about The Coyle Group, please visit: we are located at: 30 South Main Street, New City, NY 10956 845-634-3606
☎To contact Gordon please call: 845-474-2924
📫 and his email is
🎬 Be sure to subscribe to this YouTube Channel to get more insurance and risk management information!